The federal contractor regulations built around Executive Order 11246 ceased to operate on October 26, formally closing a compliance system that had shaped government procurement for more than five decades.
The Department of Labor’s final rule removes the regulations that implemented the order, which President Donald Trump revoked in January 2025. Covered contractors had previously been required to maintain race- and sex-based affirmative-action programmes, conduct workforce analyses and comply with related recordkeeping, posting and enforcement provisions administered by the Office of Federal Contract Compliance Programs.
The change does not remove the separate prohibitions on employment discrimination contained in Title VII of the Civil Rights Act or other federal and state laws. Contractors also remain subject to distinct obligations concerning protected veterans and workers with disabilities, although the department revised parts of those regimes in companion rules that took effect in September.
The department estimates that the rescission affects about 107,000 supply-and-service establishments and nearly 10,000 construction contractors, covering roughly 32 million workers. It projected annual compliance savings of about $996 million, an agency estimate based principally on eliminating preparation and maintenance work associated with the former affirmative-action requirements.
The rule is final and effective. It is an administrative consequence of the earlier presidential revocation rather than a judicial decision, and it does not determine whether any particular contractor has complied with surviving anti-discrimination law.
