Goodbye EO 11246: Feds Axe Affirmative Action Contractor Rules Overnight
Published Date: 8/21/2026
Rule
Summary
On January 21, 2025, President Trump issued Executive Order 14173, "Ending Illegal Discrimination and Restoring Merit-Based Opportunity," which revoked Executive Order 11246. Accordingly, the U.S. Department of Labor publishes this final rule to rescind the implementing regulations for Executive Order 11246.
Analyzed Economic Effects
6 provisions identified: 4 benefits, 2 costs, 0 mixed.
Written AAPs for Many Contractors End
If you are a Federal contractor or subcontractor, the Department is rescinding the rules that made nonconstruction contractors with 50 or more employees and a contract of at least $50,000 create and keep a written Affirmative Action Program (AAP). This rescission takes effect October 26, 2026 and removes the regulatory requirement to prepare the AAPs formerly found in 41 CFR part 60-2.
OFCCP Administrative Enforcement Limited
The rule removes the E.O. 11246 components from OFCCP's administrative enforcement procedures (41 CFR part 60-30), which previously authorized OFCCP to start administrative proceedings and seek remedies (including back pay and make-whole relief) for violations of the E.O. 11246 regulations. Those E.O. 11246 enforcement mechanisms are rescinded effective October 26, 2026.
Construction Participation Goals Removed
The rule rescinds the construction contracting rules in 41 CFR part 60-4 that applied to Federal or federally assisted construction contracts over $10,000. That includes removal of the participation goals, such as the 6.9% female participation goal and geographic minority participation goals, for covered construction work.
Recordkeeping Rules for Contractors Dropped
The Department is rescinding the record-retention and workforce data collection rules that required contractors to keep personnel and employment records for at least two years (and one year for contractors with fewer than 150 employees or contracts under $150,000) and to identify gender, race, and ethnicity in records. These regulatory requirements are removed effective October 26, 2026.
New EO Requires Anti-DEI Contract Clause
Separately, Executive Order 14398 (March 26, 2026) requires Federal contractors to include a contract clause promising they will not engage in "disparate treatment based on race or ethnicity" in recruitment, employment, contracting, program participation, or resource allocation, and to furnish records to verify compliance. The EO states noncompliance may lead to contract cancellation, suspension, or debarment, and directs the Federal Acquisition Regulatory Council to write implementing regulations.
UGESP Codification in DOL Rules Is Withdrawn
The Department is rescinding the portion of 41 CFR part 60-3 that codified the Uniform Guidelines on Employee Selection Procedures (UGESP) within the E.O. 11246 regulations. The rule states this rescission applies only to the UGESP material as codified in the E.O. 11246 regulations and does not change other agencies' interpretation or application of UGESP.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-17116, Modifications to the Regulations Implementing the Vietnam Era Veterans' Readjustment Assistance Act of 1974, as Amended
The U.S. Department of Labor publishes this final rule to revise its implementing regulations for the Vietnam Era Veterans' Readjustment Assistance Act of 1974, as amended (VEVRAA). These revisions will align the regulations with Executive Order 14173 and remove the VEVRAA regulations' cross-references to the Executive Order 11246 authority. Executive Order 11246 was revoked by Executive Order 14173 on January 21, 2025. This final rule also makes technical revisions to update the VEVRAA regulations' jurisdictional thresholds, which were adjusted for inflation by the Federal Acquisition Regulation Council on October 1, 2025.
2026-17115, Modifications to the Regulations Implementing Section 503 of the Rehabilitation Act of 1973, as Amended
The U.S. Department of Labor is revising its implementing regulations for Section 503 of the Rehabilitation Act of 1973, as amended (Section 503). The revisions align the regulations with applicable law and recent executive orders, including Executive Order 14173, "Ending Illegal Discrimination and Restoring Merit-Based Opportunity," and Executive Order 14219, "Ensuring Lawful Governance and Implementing the President's `Department of Government Efficiency' Deregulatory Initiative."
2025-16920, Modifications to the Regulations Implementing Section 503 of the Rehabilitation Act of 1973, as Amended; Extension of Comment Period
The Department of Labor is giving folks more time to share their thoughts on new rules that help people with disabilities get fair job opportunities. If you’re affected by these changes, you now have until September 17, 2025, to speak up—no extra extensions after that! This is a big deal for employers and job seekers aiming for a fair and inclusive workplace.
2025-16919, Rescission of Executive Order 11246 Implementing Regulations; Extension of Comment Period
The Department of Labor is planning to cancel the rules for Executive Order 11246, which affects businesses that follow these rules. They’ve extended the time to share your thoughts until September 17, 2025, giving everyone a bit more time to speak up. If you’ve already commented, no need to do it again—just make sure to get any new ideas in before the deadline!
2025-16921, Modifications to the Regulations Implementing the Vietnam Era Veterans' Readjustment Assistance Act of 1974, as Amended; Extension of Comment Period
The Department of Labor is giving folks more time to share their thoughts on changes to rules helping Vietnam Era veterans adjust to civilian life. If you’re involved with these veterans or their benefits, you’ve got until September 17, 2025, to speak up—no extra extensions after that! This delay doesn’t cost money but makes sure everyone’s voice is heard before final decisions.
2025-12006, Modifications to the Regulations Implementing the Vietnam Era Veterans' Readjustment Assistance Act of 1974, as Amended
The Department of Labor is updating rules that help Vietnam Era veterans get fair job chances. These changes make sure the rules match new court decisions and presidential orders, aiming to stop illegal discrimination and boost fair hiring. Veterans and employers should watch for these updates, which could affect hiring practices soon but don’t involve new costs.
Previous / Next Documents
Previous: 2026-17113, Fisheries of the South Atlantic; Commercial Closure for Blueline Tilefish in the South Atlantic
NMFS implements an accountability measure for the commercial harvest of blueline tilefish in the exclusive economic zone (EEZ) of the South Atlantic. NMFS estimates that commercial landings of blueline tilefish will reach the commercial annual catch limit (ACL) for the 2026 fishing year. Accordingly, NMFS closes the commercial sector of blueline tilefish in the South Atlantic EEZ to protect the blueline tilefish resource from overfishing.
Next: 2026-17115, Modifications to the Regulations Implementing Section 503 of the Rehabilitation Act of 1973, as Amended
The U.S. Department of Labor is revising its implementing regulations for Section 503 of the Rehabilitation Act of 1973, as amended (Section 503). The revisions align the regulations with applicable law and recent executive orders, including Executive Order 14173, "Ending Illegal Discrimination and Restoring Merit-Based Opportunity," and Executive Order 14219, "Ensuring Lawful Governance and Implementing the President's `Department of Government Efficiency' Deregulatory Initiative."