On December 9, 2014, the Office of
Federal Contract Compliance Programs (“OFCCP”) published a
Final Rule implementing President Obama’s Executive
Order 13672, which incorporates “sexual orientation” and “gender identity” as
protected classes and bars related employment discrimination by federal
government contractors. The Final Rule
becomes effective on April 8, 2015 (120 days after publication in the Federal
Register). The Rule was initially expected to be published in the Federal
Register on December 3, 2014, but a notice soliciting comments on the Rule
pursuant to the Paperwork Reduction Act was issued instead, providing for a 60
day comment period. Despite this comment period, given that the OFCCP has
already issued
FAQs pertaining to the Rule, no
substantive changes are expected.
The new Rule implements Executive Order
13672 by amending the implementing regulations under Executive Order 11246. The
Rule will apply to contractors or subcontractors with more than $10,000 in
federal government business and covers contracts entered into or modified on or
after the effective date. The regulations do not define the terms “sexual orientation”
or “gender identity.” As set forth in the OFCCP’s FAQs, the OFCCP utilizes the
same definitions used by the Equal Employment Opportunity Commission and case
law developed under Title VII of the Civil Rights Act.
What Does the New Rule Require?
- Covered
contractors and subcontractors must revise the Equal Opportunity Clause
contained in new and modified contracts, subcontracts and purchase orders,
and update the equal opportunity language in their Equal Employment
Opportunity (“EEO”) policy statements, training materials, handbooks, and job
solicitations to include “sexual orientation” and “gender identity,” or
otherwise replace the phrase “sex, or national origin” with the phrase
“sex, sexual orientation, gender identity, or national origin” throughout.
- Covered
contractors and subcontractors must post revised “EEO and the Law” posters
that include sexual orientation and gender identity as protected classes
and otherwise revise all posted EEO notices to include sexual orientation
and gender identity. A revised “EEO and the Law” poster has not yet
been released by the OFCCP or EEOC.
- Overall,
covered contractors and subcontractors must ensure that applicants and
employees are not discriminated against on the basis of their sexual
orientation or gender identity.
What is Not Required by the New Rule?
- The
Final Rule does not require covered contractors to conduct any data
analysis with respect to the sexual orientation or gender identity of
their applicants or employees.
- The
Final Rule does not contain any affirmative action program requirements,
and thus does not change any of the written affirmative action plan
requirements contained in 41 C.F.R. Part 60-2.
- The
Final Rule does not require covered contractors to establish placement
goals for employing persons on the basis of sexual orientation or gender
identity.
For more information on the new Rule and how it may apply
to your business, please contact
Connell Foley’s labor and employment law attorneys.