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                                                                                               March 12, 2025

The History and Status of the Office of Federal Contract


Compliance Programs (OFCCP)

The Office of Federal Contract Compliance Programs
(OFCCP)  is an agency in the U.S. Department of Labor
(DOL)  created in 1965 to ensure that employers conducting
business with the federal government comply with certain
equal employment opportunity laws. On January 21, 2025,
President Trump signed Executive Order (E.O.) 14173,
Ending Illegal Discrimination and Restoring Merit-Based
Opportunity, which rescinded much of the policy that
OFCCP   had implemented. E.O. 14173 has broad
implications for the operations and continued functioning of
OFCCP.

Origins   of OFCCP
The federal government's interest in equal employment
opportunity among federal contractors dates back to E.O.
8802. Signed in 1941 by President Roosevelt, this executive
order prohibited federal defense contractors from
discriminating on the basis of race and ethnicity. Over the
next two decades, Presidents Truman and Eisenhower
expanded efforts to combat discrimination within the
federal contractor workforce. President Kennedy was the
first to require federal contractors to take affirmative
action to ensure nondiscrimination with regard to
employees' race, creed, color, or national origin (via E.O.
10925).

After the passage of the Civil Rights Act of 1964, President
Johnson issued E.O. 11246 (Equal Employment
Opportunity) on September 24, 1965. This executive order
transferred enforcement authority for equal employment
opportunity from a presidential committee to DOL,
empowering  the department to take action against federal
contractors for violations. Sanctions for violations could
include debarment and the cancellation of contracts. On
October 5, 1965, the Secretary of Labor issued an order
using DOL's new authorities to create the Office of Federal
Contract Compliance (OFCC), which received its first
congressional appropriation in 1966.

The first director of OFCC promulgated regulations
requiring every federal contractor with more than 50
employees and a contract of more than $50,000 to develop
an affirmative action plan. For more on what E.O. 11246
and its implementing regulations required, see CRS Legal
Sidebar LSB 11268, Rescission of Executive Order 11246,
Equal Employment  Opportunity: Legal Implications.

From OFCC to OFCCP
Over the next decade, OFCC's authority gradually
expanded. President Johnson amended E.O. 11246 in 1967
to include sex as a prohibited basis of discrimination by
federal contractors and require affirmative action for
women.  In 1972, President Nixon signed the Equal


Employment  Opportunity Act into law. The following year,
Congress passed the Rehabilitation Act of 1973, followed
by the Vietnam Era Veterans' Readjustment Act
(VEVRAA)   of 1974.

By  1975, OFCC was responsible for ensuring federal
contractors enforced nondiscrimination requirements and
developed affirmative action plans for veterans and
individuals with disabilities, in addition to the classes
included in E.O. 11246, as amended. President Ford
renamed OFCC   to OFCCP to reflect its expanded
jurisdiction.

Expansions of OFCCP's Mandate
After the name change, Administrations continued to
expand the role of OFCCP via amendments to E.O. 11246
and other administrative actions. For example, the Reagan
Administration developed Exemplary Voluntary Efforts
Awards  for contractors with exceptional programs for
women,  minorities, and individuals with disabilities.

In the 1990s, as part of the Glass Ceiling Initiative, OFCCP
under the George H.W. Bush Administration found that
while the percentage of women and minorities in the
workforce had increased, they were still poorly represented
in senior management positions across the 94 largest private
federal contractors. The Clinton Administration built upon
this work with a variety of OFCCP initiatives, including a
Glass Ceiling Commission.

In the 2000s, the Jobs for Veterans Act of 2002 amended
VEVRAA to   include veterans who had served in the
National Guard or active reserves. In that same year,
President George W. Bush signed E.O. 13279, which
exempted religiously affiliated contractors from some of
E.O. 11246's religious nondiscrimination requirements.
With E.O. 13665, the Obama Administration barred federal
contractors from discriminating against employees for
discussing compensation.

Enforcement Authorities
Prior to the recent E.O. 14173, OFCCP administered and
enforced three equal employment opportunity laws among
federal contractors: (1) E.O. 11246, as amended; (2)
Section 503 of the Rehabilitation Act of 1973, as amended;
and (3) VEVRAA,  as amended.

E.O. 11246, as amended, empowered DOL  to enforce,
among  other things, the following provision to be placed in
federal contracts:


igross.gov

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