Government ends rules for fair hiring by federal contractors
The government has removed old rules that told companies working for them how to hire people fairly.
Affects: Employers, All immigrants · Source: Federal Register
What happened
On January 21, 2025, the President issued a new order called Executive Order 14173. This new order officially ended an older order known as Executive Order 11246.
Because the older order was canceled, the U.S. Department of Labor has now removed the specific rules that helped carry out Executive Order 11246. These rules were about how companies working for the federal government should hire and treat their employees.
This means that certain government requirements for fair hiring and equal opportunity for federal contractors are no longer in effect. The change became official on October 26, 2026.
The bigger picture
For many years, since 1965, Executive Order 11246 required companies that had contracts with the U.S. government to follow certain rules. These rules made sure these companies did not treat workers or job applicants unfairly because of their race, color, religion, sex, national origin, or other reasons. It also asked them to take "affirmative action" steps to make sure everyone had a fair chance at jobs.
The government says it is making this change because the President's new order, Executive Order 14173, ended the old Executive Order 11246. The Department of Labor also believes that some of the old rules were not allowed by law or went against the U.S. Constitution. They also mentioned that the government lacked the proper legal power to keep these specific rules in place.
What this means for you
Employers
Companies that work with the federal government will no longer have to follow specific rules from Executive Order 11246. This means they will not need to take certain "affirmative action" steps or report on them. They still must follow other laws against discrimination.
All immigrants
The specific protections against discrimination based on national origin under Executive Order 11246 are now removed for federal contractors. While other laws still protect against discrimination, this particular set of rules is gone. Immigrants working for or applying to federal contractors will still be protected by other federal anti-discrimination laws.
Green card applicants
No direct change for you. This rule change affects how federal contractors hire and treat their employees, not the green card application process itself.
H1B workers
No direct change for you. This rule change affects general employment practices for federal contractors, not specific visa types or work permit rules.
What you should do
- Nothing right now — just good to know.
Key dates
- 2025-01-21: Presidential order issued, revoking Executive Order 11246
- 2026-08-21: Department of Labor's final rule was published
- 2026-10-26: Department of Labor's rule becomes effective
Words explained
- Executive Order
- A rule or command given by the President of the United States.
- Rescind
- To officially cancel or take back a law, order, or agreement.
- Federal Contractor
- A company or person that has a contract to do work for the U.S. government.
- Discrimination
- Treating someone unfairly because of their race, religion, gender, or other personal traits.
- Affirmative Action
- Steps taken by an employer to make sure people from groups that have faced unfair treatment in the past get a fair chance.
Common questions
Does this mean companies can now discriminate?
No. This change removes specific rules tied to Executive Order 11246 for federal contractors. However, other federal laws like Title VII of the Civil Rights Act still make it illegal to discriminate based on race, color, religion, sex, and national origin.
What was Executive Order 11246?
Executive Order 11246 was a rule from 1965 that told companies working for the U.S. government not to discriminate. It also required them to take steps to ensure equal job opportunities for everyone.
When did this change happen?
The new presidential order that ended Executive Order 11246 was issued on January 21, 2025. The Department of Labor's rule to remove the old regulations became effective on October 26, 2026.
What is Executive Order 14173?
Executive Order 14173 is the new presidential order issued on January 21, 2025. It is titled "Ending Illegal Discrimination and Restoring Merit-Based Opportunity" and it specifically revoked the older Executive Order 11246.
This is a plain-English explanation, not legal advice. Confirm with the official source or a licensed immigration attorney.