Labor Dept Erases Job Bias Rules – Equality Takes a Hit?
Published Date: 7/1/2025
Proposed Rule
Summary
The Department of Labor is wiping away the rules tied to an old executive order that stopped federal contractors from unfair hiring and pay practices. Since that order was canceled in January 2025, these rules no longer apply, changing how some federal contractors handle hiring and pay talks. This update affects contractors and could shift how they manage workplace fairness, with changes kicking in soon and possibly impacting compliance costs.
Analyzed Economic Effects
3 provisions identified: 1 benefits, 2 costs, 0 mixed.
Nondiscrimination and Affirmative Action Removed
If you work for a federal contractor or subcontractor, the Department of Labor proposes to rescind the regulations tied to Executive Order 11246. Those regulations, which prohibited discrimination based on race, color, religion, sex, sexual orientation, gender identity, and national origin and required affirmative action, would no longer apply after the rescission; E.O. 11246 was revoked on January 21, 2025.
Pay-Discussion Protections End for Contractors
If you work for a federal contractor or subcontractor, the rules that prevented those employers from taking adverse actions when employees asked about, discussed, or disclosed pay would be rescinded. The rescission follows the revocation of E.O. 11246 on January 21, 2025.
Contractor Compliance Burden Changes
If you are a federal contractor or subcontractor, the Department of Labor's proposed rescission of the E.O. 11246 regulations follows the revocation of the order on January 21, 2025. The rule change affects how contractors manage hiring and pay practices and could change their compliance costs.
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