What Is Executive Order 11246?

Executive Order 11246 is a pivotal regulation in the landscape of U.S. labor and employment law. Signed by President Lyndon B. Johnson on September 24, 1965, the order prohibits federal contractors and subcontractors from discriminating in employment decisions on the basis of race, color, religion, sex, or national origin. Over the decades, the order has been amended and expanded to include protections based on sexual orientation, gender identity, and more. Administered by the Office of Federal Contract Compliance Programs (OFCCP), the order not only mandates nondiscrimination but also requires affirmative action to ensure equal employment opportunity.

Historical Background

The signing of Executive Order 11246 came during the height of the Civil Rights Movement. It was part of a broader initiative to dismantle institutional barriers to equality in American workplaces. Prior to EO 11246, similar executive actions had been issued during World War II and the Truman administration, focusing mainly on racial discrimination in defense industries. However, these earlier efforts lacked enforceable mechanisms and broad coverage.

President Johnson’s executive order was more comprehensive. It shifted responsibility from the President’s Committee on Equal Employment Opportunity to the newly formed OFCCP under the Department of Labor. This move gave the regulation stronger oversight and enforcement capabilities. The aim was not only to eliminate discrimination but also to promote diversity and inclusion actively within companies doing business with the federal government.

Key Provisions and Requirements

At its core, Executive Order 11246 applies to all contractors and subcontractors doing over $10,000 in business with the federal government. Covered employers are required to take several specific actions:

1. Nondiscrimination Clause: Federal contracts must include a clause prohibiting discrimination based on race, color, religion, sex, or national origin. This clause must also be included in subcontracts and purchase orders.
2. Affirmative Action Obligations: Contractors with 50 or more employees and contracts exceeding $50,000 must develop and maintain a written Affirmative Action Program (AAP). The AAP outlines proactive steps to identify and remove barriers to equal employment opportunity.
3. Recordkeeping and Reporting: Employers are expected to collect and analyze employment data to ensure they are not engaging in discriminatory practices, intentionally or unintentionally.
4. Compliance Reviews: The OFCCP conducts audits and compliance reviews. If violations are found, contractors can face sanctions, including suspension or termination of their federal contracts.
5. Remedies and Penalties: If a contractor is found to be noncompliant, they may be required to take corrective actions. In severe cases, the Department of Labor can recommend that the contractor be debarred from future government contracts.

Amendments and Expansions

Over the years, Executive Order 11246 has been amended to reflect evolving social norms and legal standards:

• In 1967, the order was amended to include "sex" as a protected category.
• Under President Bill Clinton’s administration, sexual orientation was added through Executive Order 13087 in 1998.
• President Barack Obama further expanded protections in 2014 to include gender identity via Executive Order 13672.

These additions broadened the scope of the original order, aligning it with the modern understanding of workplace discrimination and diversity.

Enforcement and Oversight

The OFCCP is responsible for enforcing EO 11246. This agency investigates complaints, conducts routine compliance evaluations, and offers compliance assistance to contractors. Unlike the Equal Employment Opportunity Commission (EEOC), which addresses discrimination in the broader workforce, the OFCCP focuses specifically on companies that receive federal funding.

Contractors found in violation must develop and implement corrective action plans. In cases of systemic or willful discrimination, penalties may include contract termination and exclusion from future federal contracting opportunities. The OFCCP also engages in outreach and training efforts to help contractors understand their obligations and build more inclusive workplaces.

Impact on the Workplace

Executive Order 11246 has had a significant influence on employment practices in the United States. It was one of the earliest federal mandates requiring affirmative action, shifting employers from passive compliance with nondiscrimination laws to proactive efforts to diversify their workforce. As a result, many large employers began tracking hiring and promotion practices more carefully, establishing internal policies to support equal opportunity, and appointing diversity officers or departments.

The order also laid the groundwork for broader affirmative action policies and served as a model for state and private-sector programs. Its influence can be seen in the widespread use of equal opportunity language in job postings and organizational diversity initiatives across industries.

The Bottom Line

Executive Order 11246 is a foundational regulation in U.S. labor law that prohibits discrimination and requires affirmative action among federal contractors. Since its enactment in 1965, it has evolved to include broader protections and has significantly shaped how employers approach workplace equality. By enforcing both nondiscrimination and affirmative action requirements, the order continues to play a central role in advancing equal opportunity in federally connected employment.