Purpose and coverage. Executive Order 11246 requires that all federal contractors not discriminate on the basis of race, color, religion, sex or national origin. The Executive Order also requires that federal contractors develop an affirmative action program. The program must affect the employer's recruiting, training and promotion of employees. A federal contractor is subject to Executive Order 11246 if it has federal contracts which in the aggregate are worth more than $10,000 in any twelve-month period.
A written affirmative action compliance program must be developed by the contractor if the contractor or subcontractor employs fifty people and (1) has a contract of $50,000 or more; or (2) has government bills of lading which in any twelve-month period total $50,000 or more; or (3) serves as a depository of government funds in any amount; or (4) is a financial institution which is an issuing and paying agent for U.S. Savings Bonds and savings notes in any amount.1 The written plan must include the identification and analysis of problem areas inherent in minority employment, steps to guarantee equal employment opportunity, goals and timetables for the achievement of full and equal employment opportunity, and additional requirements.2
The OFCCP enforces Executive Order 11246 in that it has the power to enforce contracts, suspend contracts, or prohibit future contracts. The OFCCP demands strict compliance with its regulations, and you should consult with competent counsel when developing an affirmative action program.
State affirmative action laws. Note that each state may have its own affirmative action requirements of state contractors and subcontractors. You should determine whether the laws of your state have such requirements.
SOURCES
- 41 CFR § 60-1.40.
- 41 CFR § 60-2.13.