Overview
This section outlines the implementation of Executive Order 11246, which mandates that federal agencies promote equal employment opportunity and prohibit discrimination in government contracting. It establishes the requirement for the Equal Opportunity clause and prohibits agencies from contracting with entities found to be in noncompliance.
Key Rules
- Mandatory Clause Inclusion: The Equal Opportunity clause must be included in all nonexempt federal contracts and subcontracts.
- Protected Classes: Discrimination is prohibited based on race, color, religion, sex, sexual orientation, gender identity, or national origin.
- Pay Transparency Protections: Contractors cannot discharge or discriminate against employees or applicants for discussing, inquiring about, or disclosing compensation information, subject to limited exceptions for employees with authorized access to such data as an essential job function.
- Ineligibility Sanctions: Contracting officers are prohibited from entering into new contracts or approving subcontracts with persons or firms found ineligible by the Deputy Assistant Secretary for Labor due to E.O. 11246 noncompliance.
- Anti-Evasion Clause: Contracting activities cannot be structured or "broken up" specifically to avoid the applicability of E.O. 11246 requirements.
- Dispute Jurisdiction: Disputes regarding EEO compliance are handled under the Department of Labor’s rules and regulations (41 CFR 60-1.1) rather than standard FAR dispute clauses.
Practical Implications
- Compliance Verification: Before award, Contracting Officers must ensure that the prospective contractor has not been barred from federal contracting by the Department of Labor for EEO violations.
- Policy Updates: Contractors must ensure their internal handbooks and HR policies do not prohibit employees from discussing their wages, as such "pay secrecy" policies would violate the pay transparency requirements of this section.