Palmetto Plain

Federal · DOL final rule, 91 FR 54444

Labor Department rescinds federal contractor affirmative action rules under Executive Order 11246

Final rule Aug. 21, 2026 ยท Effective Oct. 26, 2026

Published · Last updated

Free. Nonpartisan. Unsubscribe anytime.

The short version

  • Executive Order 11246 (1965) barred federal contractors from certain kinds of employment discrimination and required affirmative action steps. Executive Order 14173 revoked it on January 21, 2025.
  • This rule removes the Labor Department regulations that carried out the 1965 order. That includes written affirmative action program requirements for supply and service contractors and affirmative action requirements for construction contractors.
  • DOL estimates the rule removes requirements for about 101,850 supply and service contractor establishments and 9,982 construction contractors.
  • Separate rules for disability (Section 503) and veterans (VEVRAA) obligations of contractors were handled in their own rulemakings.
Status
Final rule published Aug. 21, 2026. Takes effect Oct. 26, 2026.
Official source
Federal Register: Rescission of Executive Order 11246 Implementing Regulations (91 FR 54444)

What it does

  • Background. E.O. 11246 and its regulations barred covered federal contractors and subcontractors from discriminating because of race, color, religion, sex, sexual orientation, gender identity or national origin, or because workers asked about or discussed pay. Contractors also had to take certain affirmative actions. (91 FR 54444)
  • Rescission. Because E.O. 14173 revoked E.O. 11246 on January 21, 2025, DOL is removing the implementing regulations at 41 CFR parts 60-1, 60-2, 60-3, 60-4, 60-20, 60-40, 60-50 and 60-999. It is also removing the E.O. 11246 pieces of the enforcement procedures in part 60-30. DOL also said significant parts of the framework were “legally vulnerable.” (91 FR 54444)
  • Paperwork. Contractors are “no longer required to develop, update, and maintain written E.O. 11246” affirmative action programs. (91 FR 54444)
  • Comments. DOL received 917 comments on its July 2025 proposal. Supporters cited lower compliance costs. Opponents, including nine members of the House, asked DOL to reconsider. (91 FR 54444)

Who it affects

Federal contractors and subcontractors, including South Carolina manufacturers, construction firms and service companies with federal contracts, and their employees. DOL estimates about 32 million people work at covered entities nationwide. (91 FR 54444)

What it means for you

The rule removes regulations under an executive order. It does not repeal federal civil rights statutes, such as Title VII of the Civil Rights Act of 1964, which the EEOC enforces. Contractor obligations for people with disabilities and veterans were addressed in separate DOL rulemakings. (91 FR 54444; EEOC)

Current status

Final rule published August 21, 2026. Takes effect October 26, 2026. (91 FR 54444)

Sources

Get the next explainer in your inbox

South Carolina and federal laws, explained in plain English. One email a week: what changed and what it means for you.

Free. Nonpartisan. Unsubscribe anytime. We'll email you a link to confirm. Privacy policy

Every statement above is drawn from the official source text linked here; section references are shown in grey. This is a plain-English summary, not legal advice. Spot an error? Tell us.