The Office of Federal Contractor Compliance Programs (“OFCCP”) released its final rule that prohibits sex discrimination for federal contractors and subcontractors pursuant to Executive Order 11246.
The final rule updates the OFCCP’s old regulations dating back to 1970. According to the OFCCP, the revised guidelines better reflect “the current state of the law and the reality of a modern and diverse workforce.” The rule will go into effect on August 15, 2016.
Why is this important?
All federal contractors and subcontractors need to be cognizant of the final rule’s implications because it addresses multiple employment issues beyond the scope of sex discrimination, including but not limited to, pay discrimination; sexual harassment and hostile work environments; workplace accommodations for pregnant employees; gender identity discrimination; and family caregiving discrimination.
While most of the OFCCP’s updates simply align the final rule with current case law, statutes, and regulations (e.g., Title VII, the Lilly Ledbetter Fair Pay Act, the Pregnancy Discrimination Act, etc.), the rule also creates and enhances certain employee protections.
Highlights and Added Protections
The definition of “sex” includes pregnancy, childbirth, or related medical conditions; gender identity; transgender status; and sex stereotyping.
– Parental leave for newborn, adopted, or foster children must be provided to men and women on the same basis.
– Unlawful discrimination includes adverse treatment on account of (1) gender norms and expectations regarding appearance, attire or behavior; (2) actual or perceived gender identity or transgender status; and (3) gender-stereotyped assumptions relating to (a) family caretaking responsibilities, or (b) working in a particular job, sector, or industry.
– A variety of workplace accommodations—for instance, extra bathroom breaks or lighter-duty assignments—must be provided to employees affected by pregnancy, childbirth, and related medical conditions.
– Benefits and contributions in fringe-benefit plans—including medical, hospital, accident, life insurance, and retirement benefits; profit-sharing and bonus plans; leave; etc.—must be provided to male and female employees on the same basis.
– An optional “Best Practices Appendix” suggests contractors should, for example, designate single-use bathrooms, changing rooms, showers, or similar facilities as sex-neutral and provide equal and appropriate time off and flexible workplace policies to both male and female employees.
Bottom Line
Federal contractors and subcontractors are already subject to many of these regulations. The final rule, however, expands some protections to employees of federal contractors and subcontractors in various areas. All federal contractors should reevaluate their employment rules and processes to ensure compliance with the new regulations by August 15, 2016 and consider the rule’s suggested “best practices.”