The US Department of Labor’s Office of Federal Contract Compliance Programmes (OFCCP) has announced a rescission of the final rule “Implementing Legal Requirements Regarding the Equal Opportunity Clause’s Religious Exemption,” which has been in effect since January 8, 2021. The rescission will be published in the Federal Register on March 1, 2023.

OFCCP enforces Executive Order 11246 (E.O.11246), which prohibits federal contractors and subcontractors from discriminating in employment decisions based on race, color, religion, sex, sexual orientation, gender identity or national origin. E.O. 11246 contains a religious exemption for religious corporations, associations, educational institutions, and societies with respect to the employment of individuals of a particular religion. The E.O.11246 religious exemption is expressly modeled on the religious exemption in Title VII of the Civil Rights Act of 1964.

OFCCP’s rescission preserves the E.O.11246 religious exemption, which is still available to qualifying contractors. The rescission ensures a return to the Department’s prior policy and practice, operative during the presidencies of George W. Bush and Barack Obama, of interpreting and applying the E.O.11246 religious exemption consistent with Title VII principles and case law.

To help stakeholders understand the proposed rescission, OFCCP has created the following resources:

Director Jenny R. Yang’s Blog Post: “Protecting Workers and Safeguarding Religious Freedom”

OFCCP’s Landing Page for the Rescission of the Final Rule, “Implementing Legal Requirements Regarding the Equal Opportunity Clause’s Religious Exemption”