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Federal Contractors and Executive Order 11246

By Sherrard Lee Hayes and Shafeeqa Giarratani
August 28, 2007

This past year has seen a flurry of activity under Executive Order 11246 ('EO 11246'), the law that governs the administration of affirmative action programs of employers that have certain government contracts or subcontracts. EO 11246 provides the government a way of evaluating employment-related race and gender trends for a particular employer. Based on the data provided by the employer, the government could, for instance, conclude that hiring decisions resulted in predicted outcomes with respect to racial and gender composition.

On the other hand, the data could indicate to the government that a significant shortfall exists in the hiring of a particular race or gender, and that the shortfall cannot be explained merely by chance. Such a case could result in significant financial and equitable remedies that go beyond simply paying a fine. Thus, the manner in which the underlying employment data are gathered and reported is critical and directly related to what conclusions the government reaches about a company's hiring, promotion, and discharge practices.

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