Executive Order 11246

Executive Order 11246 (E.O. 11246) prohibits discrimination based on race, color, religion, sex, or national origin. It is enforced by the Office of Federal Contract Compliance Programs (OFCCP), which requires affirmative action plans including utilization analysis, goals/timetables, and action steps. Contractor reviews are initiated using the federal contractor selection system (FCSS), prior review history, or random selection; about 5% of contractors are reviewed annually. The process begins with a desk audit of workforce data, compensation, and personnel decisions to detect systemic discrimination. If concerns arise, the OFCCP conducts an onsite review, using statistical analysis (e.g., regression) and interviews to gather evidence. Contractors must also file EEO-1 reports, and the OFCCP has proposed an equal pay report to include compensation and hours worked data. If systemic discrimination is found, the OFCCP issues a notice of violation (NOV) and may require a conciliation agreement and back pay or changes in compensation. If no agreement is reached, the case may go to an administrative law judge, and penalties may include contract disbarment. In 2013, the OFCCP replaced its 2006 standards with Directive 307, allowing more flexibility to investigate complex pay discrimination. To avoid violations, employers must avoid discrimination and conduct self-evaluations, ideally under legal counsel to preserve privilege.