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Executive Order 11246

GENERAL
Executive Order 11246 protects employees of covered Federal contractors and subcontractors from employment discrimination because of race, color, religion, sex and national origin. The Executive Order also requires that certain employers take affirmative action to ensure that all qualified applicants and employees receive equal employment opportunity.  E.O. 11246 and its regulations are administered and enforced by the Employment Standards Administration’s Office of Federal Contract Compliance Programs (OFCCP).

Affirmative action, or positive measures, must be taken by covered employers to recruit and advance qualified minorities and women for jobs in which they are underutilized relative to their availability. Affirmative actions include training programs, outreach efforts, and other positive steps. These procedures should be incorporated into the company’s written personnel policies. Employers with written affirmative action programs must implement them, keep them on file and update them annually.

Employers are also required to take all necessary actions to ensure that no one attempts to intimidate or discriminate against an individual for filing a complaint or participating in a proceeding under the Executive Order.

LIMITATION PERIOD & FILING REQUIREMENTS
Individuals may file complaints if they believe they have been discriminated against by federal contractors or subcontractors. Complaints also may be filed by organizations on behalf of the person or persons affected.

Complaints must be filed within 180 days from the date of the alleged discrimination, although filing time can be extended for a good reason.

If a complaint filed under Executive Order 11246 involves discrimination against only one person, OFCCP will normally refer it to the EEOC. Cases involving groups of people or indicating patterns of discrimination are generally investigated and resolved by OFCCP. Complaints may be filed directly with any of OFCCP's regional or district offices throughout the country, or with OFCCP in Washington, D.C.

JURISDICTION
E.O. 11246 covers employers with the following types of Federal contracts or subcontracts which are in excess of $10,000 or which may (or may be expected) to accumulate to more than $10,000 in any 12-month period: (1) to provide supplies; (2) to provide services; or (3) for the purchase, sale or use of real or personal property.

The following types of contracts are exempt from the Executive Order:

  • transactions of $10,000 and under;
  • contracts and subcontracts for indefinite quantities, unless the purchaser has reason to believe that the amount to be ordered in any one year will be over $10,000;
  • contracts for work that is performed outside the United States by employees who were not recruited in the U.S.; and
  • contracts exempt for national interest or security reasons;
Specific exceptions may apply to the following:
  • contracts with certain educational institutions (e.g. religiously oriented church colleges);
  • contracts for work on or near Indian reservations;
  • contractor facilities not related to contract performance, as determined by OFCCP; and,
  • contracts with State or local governments unless the governmental entity participates in work on or under the contract.
Affirmative Action Plans: Contractors and subcontractors with supply and service contracts who have 50 or more employees and a contract of $50,000 or more must develop a written affirmative action program covering each of their establishments. The written program is to include remedial steps to correct underutilization of available skilled women and minorities.

The Executive Order applies to State and local government entities which have contracts with the Federal government if the State or local government entity participates in work on or under the contract or subcontract. Unlike coverage of private sector employers, the government entity but not the government as a whole becomes subject to the Executive Order when it enters into the contract. As noted above, State “protective” laws may not be used by employers as a reason to deny employment to qualified women applicants.

REMEDIES
OFCCP investigates for violations of the Executive Order either through compliance reviews or in response to complaints. If a violation is found after an investigation, the Federal contractor is asked to enter into conciliation negotiations. If conciliation efforts fail, OFCCP initiates an administrative enforcement proceeding by issuing an administrative complaint to the contractor. The contractor has 20 days to request a review by an administrative law judge, who hears the case and makes a determination. The contractor may appeal the administrative law judge’s decision to the Department of Labor’s Administrative Review Board and, if dissatisfied with the Board’s decision, to the Federal courts. Violations may result in withholding of proposed contracts, canceling or suspending or terminating contracts, withholding of progress payments, and debarment. Final determinations on violations are enforceable through the courts.
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