The legal requirements for whether an employer must engage in affirmative action depends on whether it has federal contracts or subcontracts covered under three federal laws – Executive Order 11246 (EO 11246), Rehabilitation Act (Section 503) and/or Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA). These laws apply depending on the dollar value of the contract as described in the sections that follow. The laws are enforced by the U.S. Department of Labor Office of Federal Contract Compliance Programs (OFCCP).
Employers who are not covered federal contractors or subcontractors are not required to engage in affirmative action and doing so voluntarily may result in legal violations unless the programs meet legal restrictions. Employer diversity initiatives also must not run afoul of these restrictions.
Executive Order 11246 (EO 11246) requires that covered federal contractors and subcontractors not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin and that they undertake certain affirmative action steps. Sexual orientation and gender identity are covered in connection with contracts entered into or modified on or after April 8, 2015. Covered contractors/subcontractors are
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