More Changes for Federal Contractors

OFCCP Publishes Sex Discrimination Final Rule

June 20, 2016
Legal update

Last week, the Department of Labor’s (DOL) Office of Federal Contract Compliance Programs (OFCCP) released its Final Rule regarding the requirements that covered federal contractors must meet under the provisions of Executive Order 11246 prohibiting sex discrimination in employment.  

The Final Rule represents the first updates to the sex discrimination guidelines since 1970, and represents a comprehensive revision to the regulations for covered federal contractors, including (but not limited to): 

The Final Rule generally applies to any business or organization that (1) holds a single federal contract, subcontract, or federally assisted construction contract or subcontract in excess of $10,000; (2) holds federal contracts or subcontracts that have a combined total in excess of $10,000 in any 12-month period; or (3) holds government bills of lading, serves as a depository of federal funds, or is an issuing and paying agency for U.S. savings bonds and notes in any amount. The Final Rule will be effective on August 15, 2016. 

The DOL alleges these changes are designed to make the applicable regulations “consistent with current law.”  However, the scope of many of these issues is still being contested in courts across the country. Despite some of these legal uncertainties, the DOL will likely argue that covered contractors contractually agreed to comply with these changes. As a result, the Final Rule has substantial implications for covered contractors as the DOL will closely monitor employers’ compliance with the rules. Federal contractors should review their policies and procedures in order to implement the required changes and ensure compliance in the event of an OFCCP audit.

For more information on the DOL’s Final Rule, affirmative action/OFCCP compliance concerns, conducting a self-audit, or other questions related to employment law, please contact Julie E. Byrne or any member of Frost Brown Todd’s Labor and Employment Practice Group.