FAR 22.802—General.
Plain-English Summary
FAR 22.802 is the core policy statement connecting federal procurement to the Equal Opportunity clause under Executive Order 11246, as amended. It explains that agencies must include the clause in all nonexempt contracts and subcontracts, and must actively enforce compliance with the Secretary of Labor’s regulations. The section also identifies the protected bases covered by the order—race, color, religion, sex, sexual orientation, gender identity, and national origin—and adds the prohibition on retaliation or discrimination based on an employee’s or applicant’s inquiry, discussion, or disclosure of compensation, subject to the limited exceptions for certain job-related access to pay information and legally required disclosures. In addition, it bars agencies from entering into new contracts or approving subcontracts with persons found ineligible for noncompliance, prohibits structuring procurements to evade E.O. 11246, and directs that contractor disputes about compliance be handled under the Department of Labor’s rules and orders. In practice, this section tells contracting officers and contractors that equal employment opportunity obligations are not optional add-ons; they are mandatory contract conditions with enforcement consequences, eligibility restrictions, and a separate dispute framework outside ordinary contract administration.
Key Rules
Equal Opportunity clause required
Agencies must include the E.O. 11246 Equal Opportunity clause in all nonexempt contracts and subcontracts. This makes equal employment obligations a mandatory term of covered federal contracting relationships.
Active compliance enforcement
Agencies must act to ensure compliance with the clause and the Secretary of Labor’s regulations. The policy is not just to insert the clause, but to support enforcement of equal opportunity requirements in practice.
Protected classes and pay transparency
The rule promotes equal employment opportunity regardless of race, color, religion, sex, sexual orientation, gender identity, or national origin. It also prohibits adverse action against employees or applicants for discussing, inquiring about, or disclosing compensation, with narrow exceptions for certain employees who access pay information as part of essential job functions and for disclosures tied to complaints, investigations, proceedings, or legal duties.
Ineligible contractors barred
No new contract or contract modification involving new acquisition may be entered into, and no subcontract may be approved, with a person found ineligible by the Deputy Assistant Secretary for noncompliance with E.O. 11246. This prevents agencies from doing business with parties formally excluded for equal opportunity violations.
No evasion through structuring
Neither contracting officers nor contractors may structure supply or service contracting to avoid E.O. 11246 coverage. The government looks to substance over form, so procurement arrangements cannot be designed to sidestep equal opportunity requirements.
Labor Department dispute process
Disputes involving a contractor’s compliance obligations are handled under the Secretary of Labor’s rules, regulations, and relevant orders. This means compliance disputes follow the Department of Labor framework rather than ordinary contract dispute procedures alone.
Responsibilities
Contracting Officers
Include the Equal Opportunity clause in all nonexempt contracts and ensure subcontract approvals comply with E.O. 11246 restrictions. Do not award new contracts or approve subcontracts to persons found ineligible, and do not structure acquisitions to evade coverage.
Agencies
Support and enforce compliance with the Equal Opportunity clause and the Secretary of Labor’s regulations. Agencies must ensure procurement actions reflect the policy of full equal employment opportunity and do not bypass the rule’s coverage.
Contractors
Comply with the Equal Opportunity clause and all applicable Department of Labor regulations, including nondiscrimination and pay-transparency protections. Contractors must also avoid any contracting practices intended to evade E.O. 11246 and must follow the prescribed dispute process for compliance issues.
Subcontractors
Accept and comply with the Equal Opportunity clause when the subcontract is nonexempt and covered. Subcontractors are subject to the same nondiscrimination and compliance expectations flowing down from the prime contract.
Deputy Assistant Secretary
Determine ineligibility for noncompliance with E.O. 11246. A finding of ineligibility triggers the prohibition on new contracts, contract modifications involving new acquisition, and subcontract approvals.
Secretary of Labor
Issue and administer the rules, regulations, and relevant orders governing contractor compliance disputes and equal opportunity enforcement. The Department of Labor framework controls how compliance disputes are handled.
Practical Implications
Contracting officers must check whether a contract is nonexempt and ensure the Equal Opportunity clause is included whenever required; missing the clause can create compliance and enforcement problems.
Contractors should treat equal employment opportunity and pay-transparency obligations as active compliance duties, not just boilerplate language, because retaliation or discrimination tied to compensation discussions can lead to violations.
Before award or subcontract approval, agencies must verify that the prospective party has not been found ineligible for E.O. 11246 noncompliance; otherwise the action is prohibited.
Procurement planning should not be used to carve work into pieces or structure acquisitions to avoid E.O. 11246 coverage, since the rule expressly forbids evasion.
If a compliance dispute arises, parties should expect Department of Labor procedures to govern, so contract managers should coordinate early with labor compliance personnel rather than relying only on standard contract dispute channels.
Official Regulatory Text
(a) Executive Order 11246, as amended, sets forth the Equal Opportunity clause and requires that all agencies- (1) Include this clause in all nonexempt contracts and subcontracts (see 22.807 ); and (2) Act to ensure compliance with the clause and the regulations of the Secretary of Labor- (i) To promote the full realization of equal employment opportunity for all persons, regardless of race, color, religion, sex, sexual orientation, gender identity, or national origin; and (ii) To prohibit contractors from discharging, or in any other manner discriminating against, any employee or applicant for employment because the employee or applicant inquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant. This prohibition against discrimination does not apply to instances in which an employee who has access to the compensation information of other employees or applicants as a part of such employee's essential job functions discloses the compensation of such other employees or applicants to individuals who do not otherwise have access to such information, unless such disclosure is in response to a formal complaint or charge, in furtherance of an investigation, proceeding, hearing, or action, including an investigation conducted by the employer, or is consistent with the contractor's legal duty to furnish information. (b) No contract or modification involving new acquisition shall be entered into, and no subcontract shall be approved by a contracting officer, with a person who has been found ineligible by the Deputy Assistant Secretary for reasons of noncompliance with the requirements of E.O. 11246. (c) No contracting officer or contractor shall contract for supplies or services in a manner so as to avoid applicability of the requirements of E.O. 11246. (d) Contractor disputes related to compliance with its obligation shall be handled according to the rules, regulations, and relevant orders of the Secretary of Labor (see 41 CFR60-1.1).