Federal contractors just got major relief from decades of race- and sex-based affirmative action requirements. The Office of Federal Contract Compliance Programs has finalized three rules dismantling key pieces of a compliance regime rooted in Executive Order 11246, signed by President Lyndon Johnson in 1965. The changes affect roughly 118,000 businesses employing about one-fifth of the U.S. workforce.

The biggest change formally scraps regulations implementing Executive Order 11246, including written affirmative action requirements, utilization analyses and placement goals tied to race and sex. Separate updates under Section 503 of the Rehabilitation Act eliminate the mandatory disability self-identification form, the 7% utilization goal and related data-collection requirements while leaving core nondiscrimination and other obligations intact.

“For years, federal contractors were required to build elaborate compliance systems around race, sex and other demographic classifications,” said Dave O’Neil, director of communications for the Ohio Manufacturers’ Association (OMA). “These new rules significantly reduce that burden while preserving the core principle that employment decisions should be free from unlawful discrimination. The changes are coming fast, some obligations remain, and smart employers will review their policies now so they’re ready for the new landscape.”

Federal contractors should mark their calendars. Key effective dates arrive Sept. 21, Oct. 26 and Dec. 21. Longstanding federal, state and local laws prohibiting discrimination remain firmly in place even as these affirmative action requirements are rolled back.

OMA members with federal contracts should review their current policies and compliance practices now and consult employment counsel as needed to take advantage of the reduced regulatory burden while ensuring they remain in compliance with requirements that continue to apply. 8/24/2026