A new rule prohibiting discrimination on the bases of sexual orientation and gender identity in the federal contracting workforce was announced by the U.S. Department of Labor. The rule implements Executive Order 13672, which was signed by President Obama on July 21. 

EO 13672 tasked the department with updating the rules implementing EO 11246 to add gender identity and sexual orientation to the classes it protects. While 18 states, the District of Columbia and many businesses, large and small, already offer workplace protections to lesbian, gay, bisexual and transgender employees, July's executive order was the first federal action to ensure LGBT workplace equality in the private sector.

The final rule will become effective 120 days after its publication in the Federal Register and will apply to federal contracts entered into or modified on or after that date. 

In addition to EO 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. These three laws require contractors and subcontractors that do business with the federal government to follow the fair and reasonable standard that they not discriminate in employment on the basis of sex, race, color, religion, national origin, disability, status as a protected veteran, and now sexual orientation and gender identity.