Department Of Labor Issues Final Rule "Clarifying" The Religious Entity Exemption

On December 7, 2020, the Department of Labor's Office of Federal Contract Compliance Programs ("OFCCP") issued its final rule enhancing the religious exemption for federal government contractors already contained in its regulations (the "Rule"). The Rule, through the addition of definitions, adds detail to and arguably expands the already existing exemption on religious entities' compliance with the anti-discrimination provisions of Executive Order 11246. The Rule becomes effective January 8, 2021.

Key Takeaways:

As a practical matter, the Rule will have minimal impact on the contractor community. Most government contractors do not fall within the scope of the entities covered by the exemption, even as clarified by the Rule. Further, religious discrimination is not typically a focal point of OFCCP compliance evaluations. However, with the agency's new accommodation focused reviews, which will include an assessment of religious accommodations, the Rule may have