What are the major changes made by the final rule? OFCCP issued the final rule to provide greater clarity on the scope and application of the Executive Order 11246 religious exemption, consistent with relevant legal developments.ģ. However, the scope and application of the Title VII religious exemption have not been given a uniform interpretation across the federal circuit courts, and many of the relevant Title VII decisions predate recent and relevant Supreme Court precedent, leading to a corresponding lack of clarity regarding the scope and application of the Executive Order 11246 religious exemption. OFCCP generally interprets the nondiscrimination provisions of Executive Order 11246 consistent with the principles of Title VII. The religious exemption in section 204(c) of Executive Order 11246 and at 41 CFR 60-1.5(a)(5) parallels the religious exemption in section 702(a) of Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. What prompted OFCCP to issue the final rule? The exemption is codified in OFCCP’s regulations at 41 CFR 60-1.5(a)(5).Ģ. Though they must still comply with other requirements in Executive Order 11246, section 204(c) exempts certain religious organizations from section 202 “with respect to the employment of individuals of a particular religion to perform work connected with the carrying on” of those religious organizations’ activities. Section 202 of Executive Order 11246 requires that federal contracting agencies include in all covered contracts, and that contractors include in their subcontracts, an equal opportunity clause. What is the religious exemption to the equal opportunity clause? Does the final rule include examples of applications of the definition of “Religious corporation, association, educational institution, or society”?.What does the term “Religious corporation, association, educational institution, or society” mean?.What does the term “Particular religion” mean?.What is the process for requesting an OFCCP determination that we are a religious entity that qualifies for the religious exemption?.Can a for-profit organization be considered a religious organization that is entitled to the religious exemption?.How does OFCCP determine whether a contractor “engages in activity consistent with, and in furtherance of, its religious purpose”?.How does OFCCP determine whether a contractor “holds itself out to the public as carrying out a religious purpose”?.
NOTE: On November 9, 2021, OFCCP published a proposal to rescind the regulations established in the final rule titled, "Implementing Legal Requirements Regarding the Equal Opportunity Clause's Religious Exemption," which took effect on January 8, 2021.
The final rule clarifies the scope and application of the religious exemption contained in section 204(c) of Executive Order 11246 by adding definitions of key terms in 41 CFR 60-1.3 and a rule of construction in 41 CFR 60-1.5. On December 9, 2020, the Office of Federal Contract Compliance Programs (OFCCP) published the final rule “Implementing Legal Requirements Regarding the Equal Opportunity Clause’s Religious Exemption” in the Federal Register.
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