Proposal To Rescind Implementing Legal Requirements Regarding the Equal Opportunity Clause's Religious Exemption, 62115-62122 [2021-24376]
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List of Subjects in 33 CFR Part 100
Marine safety, Navigation (water),
Reporting and recordkeeping
requirements, Waterways.
For the reasons discussed in the
preamble, the Coast Guard is proposing
to amend 33 CFR part 100 as follows:
PART 100—SAFETY OF LIFE ON
NAVIGABLE WATERS
1. The authority citation for part 100
continues to read as follows:
■
Authority: 46 U.S.C. 70041; 33 CFR 1.05–
1.
2. Add § 100.T799–0945 to read as
follows:
■
BILLING CODE 9110–04–P
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(a) Regulated area. The regulations in
this section apply to the following area:
Waters around Isleta San Juan including
certain waters of San Juan Bay, from
surface to bottom, encompassed by a
line connecting the following points
beginning at Escuela Deportiva de Vela
de Carolina with coordinates 18°27′5.4″
N, 65°59′44.088″ W; thence east to
18°27′35.316″ N, 65°59′39.624″ W;
thence north-west to 18°27′42.48″ N,
66°0′2.556″ W; thence north to
18°28′3.504″ N, 66°0′6.264″ W; thence
west to 18°28′22.548″ N, 66°7′31.044″
W; thence south to 18°27′28.476″ N,
66°6′59.328″ W; thence north-east to
18°27′48.708″ N, 66°6′25.092″ W at the
end point in Bahia Urbana. These
coordinates are based on North
American Datum 1983.
(b) Definitions. As used in this
section—
Designated representative means a
Coast Guard Patrol Commander,
including a Coast Guard coxswain, petty
officer, or other officer operating a Coast
Guard vessel and a Federal, State, and
local officer designated by or assisting
the Captain of the Port San Juan (COTP)
in the enforcement of the regulations in
this section.
Participant means all persons and
vessels registered with the event
sponsor as a participants in the race.
(c) Regulations. (1) All nonparticipants are prohibited from
entering, transiting through, anchoring
in, or remaining within the regulated
area described in paragraph (a) of this
section unless authorized by the Captain
of the Port San Juan or their designated
representative.
(2) To seek permission to enter,
contact the COTP or the COTP’s
representative by telephone at (787)
289–2041, or a designated
representative via VHF radio on channel
17:07 Nov 08, 2021
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Gregory H. Magee,
Captain, U.S. Coast Guard, Captain of the
Port San Juan.
[FR Doc. 2021–24461 Filed 11–8–21; 8:45 am]
§ 100.T799–0945 Special Local Regulation
Safety zones; El Morro Downwind
Challenge, from Carolina, PR to San Juan
Bay, San Juan, PR.
VerDate Sep<11>2014
16. Those in the regulated area must
comply with all lawful orders or
directions given to them by the COTP or
the designated representative.
(3) The COTP will provide notice of
the regulated area through advanced
notice via broadcast notice to mariners
and by on-scene designated
representatives.
(d) Enforcement period. This section
will be enforced from 8 a.m. until 12
p.m., on January 8, 2022.
DEPARTMENT OF LABOR
Office of Federal Contract Compliance
Programs
41 CFR Part 60–1
RIN 1250–AA09
Proposal To Rescind Implementing
Legal Requirements Regarding the
Equal Opportunity Clause’s Religious
Exemption
Office of Federal Contract
Compliance Programs, Labor.
ACTION: Notification of proposed
rescission; request for comments.
AGENCY:
The Office of Federal Contract
Compliance Programs (OFCCP) is
proposing 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.
DATES: Comments must be received on
or before December 9, 2021.
ADDRESSES: You may submit comments,
identified by RIN 1250–AA09, by any of
the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Fax: (202) 693–1304 (for comments
of six pages or less).
• Mail: Tina Williams, Director,
Division of Policy and Program
Development, Office of Federal Contract
Compliance Programs, Room C–3325,
200 Constitution Avenue NW,
Washington, DC 20210.
Instructions: Please submit only one
copy of your comments by only one
method. Commenters submitting file
attachments on https://
www.regulations.gov are advised that
uploading text-recognized documents—
i.e., documents in a native file format or
SUMMARY:
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documents that have undergone optical
character recognition (OCR)—enable
staff at the Department to more easily
search and retrieve specific content
included in your comment for
consideration. Please be advised that
comments received will become a
matter of public record and will be
posted without change to https://
www.regulations.gov, including any
personal information provided.
Commenters submitting comments by
mail should transmit comments early to
ensure timely receipt prior to the close
of the comment period, as the
Department continues to experience
delays in the receipt of mail.
Docket: For access to the docket to
read background documents or
comments, go to the Federal
eRulemaking Portal at https://
www.regulations.gov. Copies of this
notice of proposed rescission will be
made available, upon request, in the
following formats: Large print, Braille,
audiotape, and disc. To obtain this
notice of proposed rescission in an
alternate format, contact OFCCP at the
telephone numbers or address listed
below.
FOR FURTHER INFORMATION CONTACT: Tina
Williams, Director, Division of Policy
and Program Development, Office of
Federal Contract Compliance Programs,
200 Constitution Avenue NW, Room C–
3325, Washington, DC 20210.
Telephone: (202) 693–0104 (voice) or
(202) 693–1337 (TTY).
SUPPLEMENTARY INFORMATION:
I. Background
OFCCP enforces Executive Order
11246, which requires federal
government contractors and
subcontractors to provide equal
employment opportunity. Section 202 of
Executive Order 11246, as amended,
requires that every non-exempt contract
and subcontract include an equal
opportunity clause, which specifies the
nondiscrimination and affirmative
action obligations each contractor or
subcontractor assumes as a condition of
its government contract or subcontract.
Among other obligations, each
contractor agrees, as a condition of its
government contract, not to
discriminate in employment on the
basis of race, color, religion, sex, sexual
orientation, gender identity, or national
origin. Executive Order 11246, as
amended, and its predecessors reflect
the government’s long-standing policy
of requiring its contractors to prevent
discrimination and provide equal
employment opportunity. See, e.g.,
Exec. Order 8802, 6 FR 3109 (June 27,
1941) (‘‘reaffirm[ing] the policy of the
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United States that there shall be no
discrimination in the employment of
workers in defense industries or
government because of race, creed,
color, or national origin’’); Exec. Order
10479, 18 FR 4899 (Aug. 18, 1953)
(reiterating ‘‘the policy of the United
States Government to promote equal
employment opportunity for all
qualified persons employed or seeking
employment on government contracts
because such persons are entitled to fair
and equitable treatment in all aspects of
employment on work paid for from
public funds’’); Exec. Order 10925, 26
FR 1977 (Mar. 8, 1961) (describing it as
‘‘the plain and positive obligation of the
United States Government to promote
and ensure equal opportunity for all
qualified persons, without regard to
race, creed, color, or national origin,
employed or seeking employment with
the Federal Government and on
government contracts’’); Exec. Order
13672, 79 FR 42971 (July 23, 2014)
(amending Executive Order 11246 to
include sexual orientation and gender
identity to ‘‘provide for a uniform policy
for the Federal Government to prohibit
discrimination and take further steps to
promote economy and efficiency in
Federal Government procurement’’).
This policy effectuates the government’s
interest in promoting economy and
efficiency in federal procurement. See
40 U.S.C. 101 (providing for ‘‘an
economical and efficient [procurement]
system’’); 40 U.S.C. 121(a) (authorizing
the President to prescribe policies and
directives to carry out that aim);
Contractors Ass’n of E. Pa. v. Sec’y of
Labor, 442 F.2d 159, 170 (3d Cir. 1971)
(‘‘[I]t is in the interest of the United
States in all procurement to see that its
suppliers are not over the long run
increasing its costs and delaying its
programs by excluding from the labor
pool available minority work[ers].’’). It
also ensures that taxpayer funds are not
used to discriminate, especially in the
performance of functions for the
government itself and, thus, for the
public.
It is OFCCP’s long-standing policy
and practice, when analyzing potential
discrimination under Executive Order
11246, to follow the principles of Title
VII of the Civil Rights Act of 1964,
which prohibits employers from
discriminating against applicants and
employees on the basis of race, color,
religion, sex (including pregnancy,
sexual orientation, and gender identity),
or national origin. 42 U.S.C. 2000e–2;
OFCCP v. Bank of Am., No. 13–099,
Final Decision & Order, 2016 WL
2892921, at *7 (ARB Apr. 21, 2016)
(‘‘[I]n addition to relevant provisions of
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E.O. 11246, its implementing
regulations, and Department precedent,
we also look to federal appellate court
decisions addressing similar pattern or
practice claims of intentional
discrimination adjudicated under Title
VII . . . .’’); OFCCP v. Greenwood Mills,
Inc., Nos. 00–044, 01–089, Final
Decision & Order, 2002 WL 31932547, at
*4 (ARB Dec. 20, 2002) (‘‘The legal
standards developed under Title VII of
the Civil Rights Act of 1964 apply to
cases brought under [Executive Order
11246]’’). As amended in 1972, Title VII
contains an exemption for religious
corporations, associations, educational
institutions, and societies with regard to
the employment of individuals of a
particular religion to perform work
connected with their activities. Equal
Employment Opportunity Act of 1972,
Public Law 92–261, 3, 86 Stat. at 104
(codified at 42 U.S.C. 2000e–1(a)). In the
decades since the enactment of the Title
VII religious exemption, a robust body
of case law interpreting the exemption
has developed, establishing its scope
and application.
In 2002, President George W. Bush
amended Executive Order 11246 to
include, almost verbatim, Title VII’s
exemption for religious organizations.
Sec. 4, Exec. Order 13279, 67 FR 77143
(Dec. 16, 2002) (codified at sec. 204(c),
Exec. Order 11246). The amendment
was intended ‘‘to ensure the economical
and efficient administration and
completion of Government contracts.’’
Id. The only substantive difference
between the text of the Title VII
religious exemption and that of the
Executive Order 11246 religious
exemption is that the latter expressly
provides that, although a government
contractor or subcontractor that is a
religious corporation, association,
educational institution, or society is
exempt from having to comply with
section 202 (the equal opportunity
clause of Executive Order 11246) ‘‘with
respect to the employment of
individuals of a particular religion,’’ it
is ‘‘not exempted or excused from
complying with the other requirements
contained in this Order.’’ Sec. 204(c),
Exec. Order 11246. The text of the Title
VII religious exemption does not
contain that express proviso. However,
the proviso is based on Title VII case
law, which has consistently held that
the Title VII religious exemption
permits qualifying religious employers
to employ individuals of a particular
religion but requires them to comply
with Title VII’s prohibitions against
discrimination on other protected bases.
See, e.g., Kennedy v. St. Joseph’s
Ministries, Inc., 657 F.3d 189, 192 (4th
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Cir. 2011); Cline v. Catholic Diocese of
Toledo, 206 F.3d 651, 658 (6th Cir.
2000); DeMarco v. Holy Cross High Sch.,
4 F.3d 166, 173 (2d Cir. 1993).
Further, the Executive Order 11246
proviso and the Title VII case law on
which it is based reflect Congress’s
intent that nondiscrimination
obligations based on other protected
characteristics continue to apply to
religious employers. See 118 Cong. Rec.
7167 (1972) (Senate Managers’ sectionby-section analysis presented by Sen.
Williams) (‘‘The limited exemption from
coverage in this section for religious
corporations, associations, educational
institutions or societies has been
broadened to allow such entities to
employ individuals of a particular
religion in all their activities. . . . Such
organizations remain subject to the
provisions of Title VII with regard to
race, color, sex or national origin.’’)
(emphasis added). This limitation on
the scope of the Title VII religious
exemption has long been recognized by
the Department of Justice Office of Legal
Counsel. See Memorandum for William
P. Marshall, Deputy Counsel to the
President, from Randolph D. Moss,
Assistant Attorney General, Office of
Legal Counsel, Re: Application of the
Coreligionists Exemption in Title VII of
the Civil Rights Act of 1964, 42 U.S.C.
2000e–1(a), to Religious Organizations
that Would Directly Receive Substance
Abuse and Mental Health Services
Administration Funds Pursuant to
Section 704 of H.R. 4923, the
‘‘Community Renewal and New Markets
Act of 2000’’ at 30–32, 31 n.62 (Oct. 12,
2000), https://www.justice.gov/olc/page/
file/936211/download.
In 2003, OFCCP published a final rule
amending its Executive Order 11246
regulations to incorporate this religious
exemption.1 Affirmative Action and
Nondiscrimination Obligations of
Government Contractors, Executive
Order 11246, as amended; Exemption
for Religious Entities, Final Rule, 68 FR
56392 (Sept. 30, 2003) (codified at 41
CFR 60–1.5(a)(5)). In the preamble to
that rule, OFCCP explained that the
religious exemption recently added to
Executive Order 11246 was ‘‘modeled
on’’ the Title VII religious exemption.
Id. In turn, OFCCP noted, the new
regulation itself ‘‘directly tracks the
1 Since 1978, OFCCP’s regulations implementing
Executive Order 11246 have contained an
exemption allowing certain educational institutions
to hire and employ individuals of a particular
religion. See Compliance Responsibility for Equal
Employment Opportunity: Consolidation of
Functions Pursuant to Executive Order 12086, 43
FR 49240, 49243 (Oct. 20, 1978) (codified at 41 CFR
60–1.5(a)(6)). This exemption is modeled on Title
VII’s exemption for religiously affiliated
educational institutions. See 42 U.S.C. 2000e–2(e).
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President’s amendment to’’ Executive
Order 11246 and ‘‘simply incorporates’’
the amendment in the regulation. Id.
The preamble and regulation did not
provide further guidance regarding the
scope or application of the religious
exemption. OFCCP continued its longstanding policy and practice of applying
Title VII principles and case law when
analyzing claims of discrimination
under Executive Order 11246. OFCCP
provided compliance assistance on the
interpretation and application of the
religious exemption through hosting
webinars and publishing guidance on its
website. In doing so, OFCCP abided by
relevant religious liberty authorities,
including the Religious Freedom
Restoration Act (RFRA) and the
ministerial exception mandated by the
religion clauses of the First
Amendment; maintained a policy of
considering RFRA claims raised by
contractors on a case-by-case basis; and
refrained from applying any regulatory
requirement to a case in which it would
violate RFRA. See, e.g., OFCCP
Compliance Webinar (Mar. 25, 2015),
https://www.dol.gov/ofccp/LGBT/FTS_
TranscriptEO13672_PublicWebinar_ES_
QA_508c.pdf; OFCCP Frequently Asked
Questions: E.O. 13672 Final Rule (2015),
archived at https://web.archive.org/web/
20150709220056/ http:/www.dol.gov/
ofccp/LGBT/LGBT_FAQs.html. OFCCP
recommended that contractors with
questions about the applicability of the
religious exemption to their
employment practices seek guidance
from OFCCP. See, e.g., Discrimination
on the Basis of Sex, Final Rule, 81 FR
39108, 39120 (June 15, 2016).
In 2019, OFCCP proposed a rule
purporting to clarify the scope and
application of the Executive Order
11246 religious exemption.
Implementing Legal Requirements
Regarding the Equal Opportunity
Clause’s Religious Exemption, Notice of
Proposed Rulemaking, 84 FR 41677
(Aug. 25, 2019). The rule was finalized
with some modifications in 2020 and
took effect on January 8, 2021.2
Implementing Legal Requirements
Regarding the Equal Opportunity
Clause’s Religious Exemption, Final
Rule, 85 FR 79324 (Dec. 9, 2020)
(hereinafter ‘‘2020 rule’’). The 2020 rule
does not alter the text of the religious
exemption at 41 CFR 60–1.5(a)(5);
instead, it defines the terms ‘‘particular
2 Shortly after it took effect, the religious
exemption rule was challenged in two district
courts. New York v. U.S. Dep’t of Labor, No. 21–
cv–00536 (S.D.N.Y. filed Jan. 21, 2021); Or.
Tradeswomen, Inc. v. U.S. Dep’t of Labor, No. 21–
cv–00089 (D. Or. filed Jan. 21. 2021). Both matters
have been stayed, and the courts have not yet
issued any substantive rulings.
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religion’’; ‘‘religion’’; ‘‘religious
corporation, association, educational
institution, or society’’; and ‘‘sincere.’’
Id. at 79371–72 (codified at 41 CFR 60–
1.3). The 2020 rule further provides a
rule of construction for all of subpart A
of 41 CFR part 60–1, specifying that the
subpart must be construed in favor of
the broadest protection of religious
exercise ‘‘permitted by the U.S.
Constitution and law.’’ Id. at 79372
(codified at 41 CFR 60–1.5(e)).
The preamble to the 2020 rule
accurately described section 204(c) of
Executive Order 11246 as ‘‘expressly
importing Title VII’s exemption for
religious organizations’’ and as
‘‘spring[ing] directly from the Title VII
exemption.’’ Id. at 79324. The preamble
continued that the Executive Order
11246 religious exemption should
therefore ‘‘be given a parallel
interpretation.’’ Id. (citing Northcross v.
Bd. of Educ. of Memphis City Sch., 412
U.S. 427, 428 (1973) (per curiam) (‘‘The
similarity of language in [two statutes]
is, of course, a strong indication that the
two statutes should be interpreted pari
passu.’’). Nevertheless, as discussed
below, the 2020 rule departs from
OFCCP’s long-standing reliance on Title
VII principles and case law. In so doing,
the 2020 rule runs contrary to the intent
of Executive Order 13279’s amendment
of Executive Order 11246 to incorporate
the scope and application of the Title
VII religious exemption. OFCCP
believes the 2020 rule’s departures from
Title VII principles and case law are
likely to increase rather than decrease
confusion about the application of the
Executive Order 11246 religious
exemption. Furthermore, to the extent
the 2020 rule reflects the previous
Administration’s policy judgments
regarding deviating from Title VII case
law and principles, the present
Administration has evaluated the range
of permissible policy options and
determined that a return to its
traditional approach of applying Title
VII case law and principles will
promote clarity and consistency in the
application of the exemption.
II. Proposal To Rescind
OFCCP proposes to rescind the
regulations established in the 2020 rule
in their entirety. OFCCP believes that
the 2020 rule creates a lack of clarity
regarding the scope and application of
the exemption because, as explained in
more detail below, it misstates the law
in key respects. In addition, as a
threshold matter, OFCCP has
reevaluated the need for the rule. For
the 17 years prior to 2020, OFCCP
implemented the Executive Order 11246
religious exemption without seeking to
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codify its scope and application in
specific regulatory language. Instead,
OFCCP included the language of the
exemption in its regulations at 41 CFR
60–1.5(a)(5) and adopted a policy of
applying Title VII case law as it
developed, with reference to relevant
religious liberty authorities where
appropriate. Significantly, the agency
already recognized that the 2020 rule
has ‘‘no effect on the overwhelming
majority of federal contractors.’’ 85 FR
at 79367. OFCCP therefore believes that
the 2020 rule is unnecessary and, for the
same reason, that no affirmative
rulemaking to modify or replace the
2020 rule is needed at this time. With
this rescission, OFCCP would return to
its traditional approach, which
recognizes the validity of applying the
religious exemption in section 204(c) of
Executive Order 11246, as codified in
OFCCP’s regulations at 41 CFR 60–
1.5(a)(5), where it is supported by Title
VII principles and applicable law.
OFCCP also believes that the 2020
rule misstates the law in key respects.
Most notably, the 2020 rule creates its
own religious employer test,
independent of Title VII case law
interpreting the identical term. The test
adopted in the 2020 rule permits a
contractor whose purpose and/or
character is not primarily religious to
qualify for the Executive Order 11246
religious exemption. This not only
places the rule in tension with the
President’s intent in expressly
incorporating the Title VII religious
exemption into Executive Order 11246
in 2003 but also undermines the
government’s long-standing policy of
requiring that federal contractors
provide equal employment opportunity,
subject to a religious exemption for
contractors with primarily religious
purpose and character. See, e.g., Exec.
Order 8802, 6 FR 3109; Exec. Order
10479, 18 FR 4899; Exec. Order 10925,
26 FR 1977; Exec. Order 13279, 67 FR
77143; Exec. Order 13672, 79 FR 42971.
In addition, the 2020 rule retreats
from the general principle that
qualifying religious employers are
prohibited from taking employment
actions that amount to discrimination
on the basis of protected characteristics
other than religion, even if the decisions
are made for sincerely held religious
reasons. In so doing, the 2020 rule
disregards the text of Executive Order
11246, undermines the government’s
interest in ensuring equal employment
opportunity by federal contractors, and
deviates from Congress’s understanding
of how the Title VII religious exemption
should operate—an understanding
courts have confirmed in Title VII cases.
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Finally, the preamble to the 2020 rule
appeared to promote a categorical
approach to the analysis of RFRA
claims. OFCCP believes this categorical
approach is inappropriate because it
extends exemptions more broadly than
RFRA requires and fails to allow
sufficient flexibility to weigh competing
governmental and third-party interests
against the interests of individuals
asserting religious exemptions. Cf., e.g.,
Cutter v. Wilkinson, 544 U.S. 709, 720
(2005) (‘‘Properly applying [the
Religious Land Use and
Institutionalized Persons Act, to which
‘‘Congress carried over from RFRA the
‘compelling governmental interest’’/
‘‘least restrictive means’ standard,’’ id.
at 716], courts must take adequate
account of the burdens a requested
accommodation may impose on
nonbeneficiaries . . . .’’). As the Court
recognized in Fulton v. City of
Philadelphia, 141 S. Ct. 1868 (2021), the
government has a ‘‘weighty’’ interest in
enforcing nondiscrimination
protections.
As it did prior to implementation of
the 2020 rule, if the rule is rescinded,
OFCCP would continue to follow Title
VII principles and case law; would
continue to apply the First Amendment
and RFRA to the facts and
circumstances of each case, where
applicable; and would offer compliance
assistance as needed with regard to the
proper scope and application of the
Executive Order 11246 religious
exemption.
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A. Reasons for Rescission of the Rule
1. Unprecedented Religious Employer
Test
The entities entitled to the religious
exemption as codified by OFCCP’s 2020
rule are the comparatively few
contractors and subcontractors (and
potential contractors and
subcontractors) that meet the regulatory
definition of ‘‘religious corporation,
association, educational institution, or
society.’’ See 85 FR at 79371–72
(codified at 41 CFR 60–1.3), 79367
(‘‘[T]his rule will have no effect on the
overwhelming majority of federal
contractors.’’).3 Because that term is
borrowed directly from the Title VII
religious exemption at 42 U.S.C. 2000e–
1(a), there is extensive Title VII case law
interpreting the term—case law that has
historically guided OFCCP (and
contractors themselves) in determining
whether an employer is entitled to the
Executive Order 11246 religious
3 OFCCP’s records indicate that since 2004, the
earliest date for which it has records, and
continuing to the present, no contractor has
invoked the religious exemption.
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exemption. Although there is no
uniform test that all courts use, the
ultimate inquiry focuses on whether the
employer’s purpose and character are
primarily religious—a determination
typically made by weighing some or all
of the following factors:
(1) Whether the entity operates for a profit,
(2) whether it produces a secular product, (3)
whether the entity’s articles of incorporation
or other pertinent documents state a religious
purpose, (4) whether it is owned, affiliated
with or financially supported by a formally
religious entity such as a church or
synagogue, (5) whether a formally religious
entity participates in the management, for
instance by having representatives on the
board of trustees, (6) whether the entity holds
itself out to the public as secular or sectarian,
(7) whether the entity regularly includes
prayer or other forms of worship in its
activities, (8) whether it includes religious
instruction in its curriculum, to the extent it
is an educational institution, and (9) whether
its membership is made up by coreligionists.
LeBoon v. Lancaster Jewish Cmty. Ctr.,
503 F.3d 217, 226 (3d Cir. 2007); see
also, e.g., Garcia v. Salvation Army, 918
F.3d 997, 1003 (9th Cir. 2019); Spencer
v. World Vision, Inc., 633 F.3d 723, 724
(9th Cir. 2011) (per curiam); Hall v.
Baptist Mem’l Health Care Corp., 215
F.3d 618, 624 (6th Cir. 2000); Killinger
v. Samford Univ., 113 F.3d 196, 198–99
(11th Cir. 1997)).
OFCCP’s 2020 rule, however, adopted
a religious employer test that largely did
not account for these precedents—
including the ultimate requirement that
the employer’s purpose and character be
primarily religious—and instead
adopted a test that no court has applied
under Title VII. 85 FR 79371 (codified
at 41 CFR 60–1.3).
The preamble to the 2020 rule
explained that OFCCP was taking this
approach because it found fault with the
federal appellate courts’ ‘‘confusing
variety of tests, [which] themselves
often involve unclear or constitutionally
suspect criteria.’’ 85 FR at 79331. The
agency commended two concurring
opinions in Spencer v. World Vision for
recognizing that ‘‘assess[ing] the
religiosity of an organization’s various
characteristics[ ] can lead the court into
a ‘constitutional minefield.’ ’’ 84 FR at
41681 (quoting Spencer, 633 F.3d at 730
(O’Scannlain, J., concurring), and citing
Spencer, 633 F.3d at 741 (Kleinfeld, J.,
concurring)); see also 85 FR at 79361.
Yet, as the preamble acknowledged, the
2020 rule itself does not even
incorporate any of the religious
employer tests set forth in the World
Vision opinions. Rather, it adopts a
definition of Title VII’s term ‘‘religious
corporation, association, educational
institution, or society’’ that does not
require an inquiry into whether a
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contractor is ‘‘primarily religious’’
because that inquiry, the preamble
argued, requires ‘‘comparison between
the amount of religious and secular
activity at an organization.’’ 85 FR at
79336.
In this respect, the 2020 rule deviates
from established Title VII
interpretations and creates its own new
test.4 No court has ever applied a
standard under which a for-profit
employer whose purpose and character
are not primarily religious could be
eligible for the Title VII religious
exemption.5 Yet under the 2020 rule,
contrary to decades of Title VII case law,
just such a for-profit contractor may
qualify for the religious exemption.
With this rescission, OFCCP would
return to its previous approach, which
would preserve the availability of the
Executive Order 11246 religious
exemption for employers whose
purpose and character are primarily
religious, and would consider the
applicability of the religious exemption
to the facts of each case in accordance
with Title VII case law. Recognizing as
exempt only those contractors that have
a primarily religious purpose and
character would provide contractors and
potential contractors with the clarity of
a single religious employer test under
both Executive Order 11246 and Title
VII.
Thus, upon reconsideration, OFCCP
views the 2020 rule’s departure from
4 Moreover, the 2020 rule departs even from the
Title VII opinions that it purports to follow,
rejecting both the prerequisite that the entity be a
nonprofit, Spencer, 633 F.3d at 734 (O’Scannlain,
J., concurring), and an alternative requirement that
the entity ‘‘not engage primarily or substantially in
the exchange of goods or services for money beyond
nominal amounts,’’ id. at 748 (Kleinfeld, J.,
concurring). See 85 FR at 79331–32. Of course, both
of these alternatives themselves are outliers from
Title VII case law, which gives weight to an entity’s
nonprofit status as one factor in the multifactor
analysis but does not treat it as an absolute
prerequisite, and does not consider as a factor at all
whether the entity engages in exchanges of more
than nominal amounts. See, e.g., LeBoon, 503 F.3d
at 226; Hall, 215 F.3d at 624; Killinger, 113 F.3d at
198–99.
5 Significantly, the Supreme Court has considered
and upheld the Title VII religious exemption
against an Establishment Clause challenge only as
applied ‘‘to the secular nonprofit activities of
religious organizations.’’ Corp. of the Presiding
Bishop of the Church of Jesus Christ of Latter-day
Saints v. Amos, 483 U.S. 327, 330 (1987) (emphasis
added). It remains an open question whether and
under what circumstances it would be
constitutional to apply the Title VII exemption to
for-profit enterprises. See Spencer, 633 F.3d at 734
n. 13 (O’Scannlain, J., concurring) (‘‘In Amos, the
Supreme Court expressly left open the question of
whether a for-profit entity could ever qualify for a
Title VII exemption.’’ (citing 483 U.S. at 349
(O’Connor, J., concurring))). The vast majority of
federal contractors are for-profit entities that have
never been deemed to qualify as religious
corporations, associations, educational institutions,
or societies.
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Title VII precedent as both unsupported
and confusing due to its creation of a
religious employer test that has never
before been applied. The substantial
body of case law in which courts—
including the Ninth Circuit post–World
Vision—have applied the traditional
Title VII test to identify employers with
primarily religious purpose and
character without infringing on
employers’ religious liberties
undermines the 2020 rule’s assertion
that OFCCP needed to abandon a
‘‘primarily religious’’ inquiry to avoid
purported constitutional minefields.
See, e.g., Garcia, 918 F.3d 997; LeBoon,
503 F.3d 217; Hall, 215 F.3d 618;
Killinger, 113 F.3d 196. Moreover,
OFCCP is concerned that the 2020 rule’s
definition of ‘‘religious corporation,
association, educational institution, or
society,’’ in departing from the
interpretation of that term under Title
VII, may decrease procurement
efficiency and increase uncertainty
within the contracting community about
the applicability of the religious
exemption. Further, OFCCP is
concerned that extending the religious
exemption to contractors whose purpose
and character are not primarily religious
runs contrary to the government’s longstanding equal employment opportunity
policy for federal contractors. Most
important, the definition adopted by the
2020 rule is inconsistent with the
President’s decision in Executive Order
13279 to incorporate Title VII doctrine
as the touchstone for the Executive
Order 11246 religious exemption.
2. Exemption of Unlawful Employment
Actions
Under both Executive Order 11246
section 204(c) and Title VII at 42 U.S.C.
2000e–1(a), qualifying religious
organizations are permitted to make
decisions ‘‘with respect to the
employment of individuals of a
particular religion.’’ The 2020 rule’s
definition of ‘‘particular religion’’
authorizes the contractor to require, as
a condition of employment, the
applicant’s or employee’s ‘‘acceptance
of or adherence to sincere religious
tenets as understood by the employer.’’
85 FR at 79371 (codified at 41 CFR 60–
1.3). The weight of Title VII case law
reflects that qualifying religious
employers generally may make
decisions about whether to employ
individuals based on acceptance of and
adherence to religious tenets, as long as
those decisions do not violate the other
nondiscrimination provisions of Title
VII, apart from the prohibition on
religious discrimination. See, e.g.,
Kennedy, 657 F.3d at 190–92 (stating
that Title VII’s religious exemption does
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not exempt religious organizations from
complying with prohibitions on race,
sex, or national origin discrimination,
but holding that a Catholic nursing
center’s termination of a nursing
assistant based on her non-Catholic
religious attire was permissibly based
on religion and not other protected
bases); Little v. Wuerl, 929 F.2d 944,
946–48 (3d Cir. 1991) (stating that Title
VII bars, for example, race and sex
discrimination against non-minister
employees, but holding that a Catholic
school’s decision not to rehire a teacher
based on her remarriage without
validation by the Catholic Church was
permissibly based on religion).
However, under the 2020 rule as
explained in the preamble, the agency
would not enforce Executive Order
11246 against a contractor for an
adverse employment action motivated
‘‘solely’’ by its sincerely held religious
tenets, even when the contractor’s
actions violate another
nondiscrimination prohibition of
Executive Order 11246 (other than race,
as discussed below). Id. at 79350; cf. id.
at 79356 (‘‘OFCCP will enforce E.O.
11246 against any contractor or
subcontractor that takes employment
actions on the basis of race, even if
religiously motivated.’’). As an example,
the preamble noted that a religious
organization might maintain ‘‘sincerely
held religious tenets regarding matters
such as marriage and intimacy which
may implicate certain protected
classes.’’ Id. at 79364.
Upon reconsideration, OFCCP is
concerned that the 2020 rule’s
suggestion that qualifying religious
organizations may be broadly exempted
from Executive Order 11246’s
nondiscrimination requirements is
contrary to the text of the religious
exemption itself, which permits the
contractor to discriminate on the basis
of religion in favor of ‘‘individuals of a
particular religion’’ while expressly not
exempting or excusing the contractor
from the other requirements of
Executive Order 11246. Sec. 204(c),
Exec. Order 11246. It is also contrary to
well-established Title VII case law. See,
e.g., Kennedy, 657 F.3d at 192 (‘‘Section
2000e–1(a) does not exempt religious
organizations from Title VII’s provisions
barring discrimination on the basis of
race, gender, or national origin.’’); Cline,
206 F.3d at 658 (‘‘[W]hile Title VII
exempts religious organizations for
‘discrimination based on religion,’ it
does not exempt them ‘with respect to
all discrimination. . . . [ ] Title VII still
applies . . . to a religious institution
charged with sex discrimination.’’)
(quoting Boyd v. Harding Acad. of
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62119
Memphis, Inc., 88 F.3d 410, 413 (6th
Cir. 1996)); DeMarco, 4 F.3d at 173
(‘‘[R]eligious institutions that otherwise
qualify as ‘employer[s]’ are subject to
Title VII provisions relating to
discrimination based on race, gender
and national origin.’’). Further, as the
Department of Justice has explained
with regard to Title VII, Congress clearly
intended for qualifying religious
employers to ‘‘remain subject to the
provisions of Title VII with regard to
race, color, sex or national origin.’’
Memorandum for William P. Marshall,
Deputy Counsel to the President, from
Randolph D. Moss, Assistant Attorney
General, Office of Legal Counsel, Re:
Application of the Coreligionists
Exemption in Title VII of the Civil
Rights Act of 1964, 42 U.S.C. 2000e–
1(a), to Religious Organizations that
Would Directly Receive Substance
Abuse and Mental Health Services
Administration Funds Pursuant to
Section 704 of H.R. 4923, the
‘‘Community Renewal and New Markets
Act of 2000’’ (Oct. 12, 2000), https://
www.justice.gov/olc/page/file/936211/
download (quoting Senate managers’
analysis, id. at 31, and numerous cases,
id. at 30–32 & n.62).
Accordingly, courts typically have
rejected claims that qualifying religious
employers are exempt from Title VII’s
other nondiscrimination provisions
where the employers claim that their
actions were based on sincere religious
beliefs and tenets. In Herx v. Diocese of
Ft. Wayne–S. Bend, Inc., for example,
the Seventh Circuit dismissed a Catholic
elementary school’s appeal of an order
denying summary judgment, thus
requiring adjudication of a language arts
teacher’s claim that the school’s
application of the church’s ban on in
vitro fertilization discriminated against
women because only women undergo
the procedure. 772 F.3d 1085, 1091 (7th
Cir. 2014). The Seventh Circuit observed
that ‘‘[t]he district court has not ordered
a religious question submitted to the
jury for decision’’ and confirmed that
the jury would be instructed ‘‘not to
weigh or evaluate the Church’s doctrine
regarding in vitro fertilization.’’ Id.; see
also, e.g., Cline, 206 F.3d at 667
(reversing the district court’s grant of
summary judgment to a religious school
on the sex discrimination claim of a
preschool teacher allegedly fired for
violating the religious school’s policy
against extramarital sex, noting that the
plaintiff was entitled to ‘‘pursue several
avenues of discovery,’’ including
seeking evidence ‘‘that St. Paul enforced
its premarital sex policy in a
discriminatory manner—against only
pregnant women, or against only
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women’’); Maguire v. Marquette Univ.,
814 F.2d 1213, 1218 (7th Cir. 1987)
(adjudicating the sex discrimination
claim of an associate professor of
theology not hired by a religious
university based on ‘‘her perceived
hostility to the institutional church and
its teachings,’’ particularly with regard
to abortion, but affirming dismissal
because the employer would have
rejected a male applicant who held
similar views about abortion).
To be sure, the Constitution imposes
some constraints on nondiscrimination
laws such as Title VII, even apart from
the statutory accommodation for
religious organizations. For example,
the religion clauses of the First
Amendment create a ‘‘ministerial
exception’’ from certain
nondiscrimination laws, including Title
VII, for positions of particular religious
significance in certain religious
organizations. See Our Lady of
Guadalupe Sch. v. Morrissey-Berru, 140
S. Ct. 2049 (2020); Hosanna-Tabor
Evangelical Lutheran Church & Sch. v.
EEOC, 565 U.S. 171 (2012). Where the
ministerial exception applies, ‘‘judicial
intervention into disputes between the
[religious organization] and the
[employee] threatens the [religious
organization’s] independence in a way
that the First Amendment does not
allow.’’ Our Lady of Guadalupe Sch.,
140 S. Ct. at 2069.
And where a religious organization
applies a ‘‘religious tenets’’ requirement
under Title VII’s religious exemption,
courts and agencies must be careful not
to unduly interrogate the plausibility of
the religious justification in assessing
whether the religious tenets claim is a
pretext for some other, impermissible
form of employment discrimination.
See, e.g., Curay-Cramer v. Ursuline
Acad. of Wilmington, Delaware, Inc.,
450 F.3d 130, 141 (3d Cir. 2006);
Mississippi College, 626 F.2d at 485;
Little v. Wuerl, 929 F.2d 944, 948 (3d
Cir. 1991).
As the Supreme Court recognized in
Bostock, however, ‘‘how these doctrines
protecting religious liberty interact with
Title VII are questions for future cases.’’
Bostock v. Clayton Cnty., 140 S. Ct.
1731, 1754 (2020). In Bostock, the Court
explained:
[W]orries about how Title VII may intersect
with religious liberties are nothing new; they
even predate the statute’s passage. As a result
of its deliberations in adopting the law,
Congress included an express statutory
exception for religious organizations.
§ 2000e-1(a). This Court has also recognized
that the First Amendment can bar the
application of employment discrimination
laws ‘‘to claims concerning the employment
relationship between a religious institution
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and its ministers.’’ And Congress has gone a
step further yet in [RFRA]. . . . Because
RFRA operates as a kind of super statute,
displacing the normal operation of other
federal laws, it might supersede Title VII’s
commands in appropriate cases.
Id. (quoting Hosanna-Tabor, 565 U.S. at
188).
These possible context-specific
constitutional and statutory limits,
however, do not affect the general rule
under both Executive Order 11246 and
relevant Title VII case law to date: The
religious exemption does not permit
qualifying employers to make
employment decisions about nonministerial positions that amount to
discrimination on the basis of protected
characteristics other than religion, even
if those decisions are based on sincere
religious beliefs and tenets.
Thus, OFCCP now believes that, in
purporting to establish a categorical
exemption for religious organizations
from Executive Order 11246’s
requirements of nondiscrimination on
other protected bases when making
employment decisions based on sincere
religious beliefs, the 2020 rule conflicts
with the text of Executive Order 11246
and does not comport with the weight
of Title VII case law. OFCCP is also
concerned that the 2020 rule’s
definition of ‘‘particular religion,’’
together with the discussion in the
preamble, could decrease procurement
efficiency by setting forth an unclear
standard that purports to exempt a
broader range of employment actions
than is covered by the plain language of
the religious exemption. Finally, OFCCP
is concerned that the religious
exemption thus broadened by the 2020
rule is inconsistent with the
government’s interest in ensuring equal
employment opportunity by federal
contractors.
3. Inappropriately Categorical Approach
to RFRA Analysis
The rule of construction added in the
2020 rule at 41 CFR 60–1.5(e) requires
that subpart A of 41 CFR part 60–1 be
construed in favor of the broadest lawful
protection of religious exercise. See 85
FR at 79372. Applying that rule of
construction, the preamble to the 2020
rule described how RFRA would ‘‘guide
the agency’s determination if and when
a particular case presents a situation
where a religiously motivated
employment action implicates a
classification protected under the
Executive Order.’’ 85 FR at 79350. In
that discussion, the preamble expressed
certain views about RFRA’s application
that were both questionable and not
pertinent to the proper construction of
Executive Order 11246.
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RFRA provides that when application
of a federal government rule or other
law would substantially burden a
person’s exercise of religion, the
government must afford that person an
exemption to the rule unless it can
demonstrate that applying the burden to
that person furthers a compelling
governmental interest and is the least
restrictive means of doing so. 42 U.S.C.
2000bb-1(b). Prior to the 2020 rule,
recognizing that ‘‘claims under RFRA
are inherently individualized and fact
specific,’’ OFCCP’s express policy was
to consider RFRA claims, if they ever
arose, based on the facts of the
particular case, and to refrain from
applying any regulatory requirement
that would violate RFRA.
Discrimination on the Basis of Sex,
Final Rule, 81 FR at 39119; see also 85
FR at 79353; OFCCP Frequently Asked
Questions: Religious Employers and
Religious Exemption, https://
www.dol.gov/agencies/ofccp/faqs/
religious-employers-exemption).
The preamble to the 2020 rule,
however, announced that OFCCP ‘‘has
less than a compelling interest in
enforcing E.O. 11246 when a religious
organization takes employment action
solely on the basis of sincerely held
religious tenets that also implicate a
protected classification, other than
race.’’ 85 FR at 79354. The preamble
repeatedly mentioned marriage and
sexual intimacy as likely subjects of
such religious beliefs requiring
accommodation, see id. at 79349, 79352,
79364, suggesting that protection from
discrimination on the bases of sex,
sexual orientation, and gender identity
in particular could be compromised
under this analysis.6 Executive Order
11246, however, lists all the protected
bases on equal terms, making no
distinction among them. See, e.g., sec.
202(1), Exec. Order 11246.
Since the 2020 rule’s publication, the
Court has reemphasized the inadequacy
of a categorical approach to defining the
government’s compelling interest in the
broader context of nondiscrimination
enforcement: ‘‘The question . . . is not
whether the [government] has a
compelling interest in enforcing its nondiscrimination policies generally, but
whether it has such an interest in
denying an exception to [the particular
religious claimant].’’ Fulton, 141 S. Ct.
at 1881. It is beyond dispute that the
government’s interests in preventing
6 By contrast, the present Administration has
committed to a policy of fully enforcing laws
prohibiting discrimination based on sexual
orientation and gender identity and protecting
religious freedom. See, e.g., sec. 1, Exec. Order
14015, 86 FR 10007 (Feb. 14, 2021); sec. 1, Exec.
Order 13988, 86 FR 7023 (Jan. 25, 2021).
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and remedying the harms of
discrimination, and in ensuring equal
employment opportunity, are
‘‘weighty.’’ Id. at 1882. But especially in
light of Fulton, OFCCP believes it is
appropriate to ground any compelling
interest assessment in the specific facts
presented by particular religious
claimants, an individualized analysis
that cannot properly be conducted in
the context of a rulemaking, where it is
not possible to weigh competing
governmental and third-party interests
in a particular case.
Therefore, upon reconsideration,
OFCCP believes that the correct
approach is to return to considering any
RFRA claims raised by contractors on a
case-by-case basis, without announcing
any categorical conclusions about
hypothetical RFRA claims related to
Executive Order 11246’s
nondiscrimination obligations.
B. Effect of Rescission
OFCCP remains committed to
protecting religious freedom in
accordance with applicable law. If the
2020 rule is rescinded as proposed here,
OFCCP will return to its policy and
practice of interpreting and applying the
religious exemption in section 204(c) of
Executive Order 11246, as codified in
OFCCP’s regulations at 41 CFR 60–
1.5(a)(5), in accordance with Title VII
principles and case law. In so doing,
OFCCP will abide by relevant religious
liberty authorities, including the
ministerial exception mandated by the
religion clauses of the First
Amendment. OFCCP will return to its
policy of considering any RFRA claims
raised by contractors on a case-by-case
basis and refraining from applying any
regulatory requirement to a case in
which it would violate RFRA. If the
2020 rule is rescinded, nothing in that
rule or its preamble could be relied on
as a statement of OFCCP’s interpretation
or application of the Executive Order
11246 religious exemption or relevant
religious liberty authorities. OFCCP will
continue to provide any needed
compliance assistance on the religious
exemption through various means.
OFCCP invites any interested party to
comment on the proposal to rescind the
2020 rule.
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III. Regulatory Procedures
A. Executive Order 12866 (Regulatory
Planning and Review) and Executive
Order 13563 (Improving Regulation and
Regulatory Review)
Under Executive Order 12866, OMB’s
Office of Information and Regulatory
Affairs (OIRA) determines whether a
regulatory action is significant and,
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therefore, subject to the requirements of
Executive Order 12866 and OMB
review. Section 3(f) of Executive Order
12866 defines a ‘‘significant regulatory
action’’ as an action that is likely to
result in a rule that: (1) Has an annual
effect on the economy of $100 million
or more, or adversely affects in a
material way a sector of the economy,
productivity, competition, jobs, the
environment, public health or safety, or
State, local, or tribal governments or
communities (also referred to as
economically significant); (2) creates
serious inconsistency or otherwise
interferes with an action taken or
planned by another agency; (3)
materially alters the budgetary impacts
of entitlement grants, user fees, or loan
programs, or the rights and obligations
of recipients thereof; or (4) raises novel
legal or policy issues arising out of legal
mandates, the President’s priorities, or
the principles set forth in Executive
Order 12866. This proposed rescission
has been designated a ‘‘significant
regulatory action,’’ although not
economically significant, under section
3(f) of Executive Order 12866. The
Office of Management and Budget has
reviewed this proposed rescission.
Executive Order 13563 directs
agencies to adopt a regulation only upon
a reasoned determination that its
benefits justify its costs; tailor the
regulation to impose the least burden on
society, consistent with obtaining the
regulatory objectives; and in choosing
among alternative regulatory
approaches, select those approaches that
maximize net benefits. Executive Order
13563 recognizes that some benefits are
difficult to quantify and provides that,
where appropriate and permitted by
law, agencies may consider and discuss
qualitatively values that are difficult or
impossible to quantify, including
equity, human dignity, fairness, and
distributive impacts.
1. The Need for the Rescission
The proposed rescission of the 2020
rule is needed to enable OFCCP to
properly apply and enforce Executive
Order 11246 by returning to its policy
and practice of interpreting and
applying the religious exemption
contained in section 204(c) of Executive
Order 11246 consistent with Title VII
principles and case law.
2. Discussion of Impacts
The proposed rescission does not
include any costs because it would add
no new compliance requirements for
contractors. The proposal would remove
the definitions of Particular religion;
Religion; Religious corporation,
association, educational institution, or
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62121
society; and Sincere from 41 CFR 60–
1.3; remove paragraphs (a) and (b) from
41 CFR 60–1.3; and remove paragraphs
(e) and (f) from 41 CFR 60–1.5.
The proposed rescission would not
include any cost savings. The only
quantitative cost assessed in the 2020
rule was for rule familiarization. This
was a one-time cost assessed on
contractors at the time of publication of
the final rule.
3. Benefits
Executive Order 13563 recognizes that
some rules have benefits that are
difficult to quantify or monetize but are
nevertheless important, and states that
agencies may consider such benefits.
Those benefits include equity and
fairness. This proposed rescission
would promote economy and efficiency
in federal procurement by preventing
the arbitrary exclusion of qualified and
talented employees on the basis of
characteristics that have nothing to do
with their ability to do work on
government contracts. It also ensures
that taxpayer funds are not used to
discriminate. It would also ensure that
federal contractors provide equal
employment opportunity on all
protected bases. Finally, it would
provide clarity and consistency for
contractors and would-be contractors
that are religious corporations,
associations, educational institutions,
and societies: Those with a primarily
religious purpose and character, that are
eligible for the Title VII religious
exemption, are also eligible for the
Executive Order 11246 religious
exemption.
B. Regulatory Flexibility Act and
Executive Order 13272 (Consideration
of Small Entities)
The Regulatory Flexibility Act of 1980
(RFA), 5 U.S.C. 601 et seq., establishes
‘‘as a principle of regulatory issuance
that agencies shall endeavor, consistent
with the objectives of the rule and
applicable statutes, to fit regulatory and
informational requirements to the scale
of the businesses, organizations, and
governmental jurisdictions subject to
regulation.’’ Public Law 96–354, section
2(b). The RFA requires agencies to
consider the impact of a regulatory
action on a wide range of small entities,
including small businesses, nonprofit
organizations, and small governmental
jurisdictions.
Agencies must review whether a
regulatory action would have a
significant economic impact on a
substantial number of small entities. See
5 U.S.C. 603. If the regulatory action
would, then the agency must prepare a
regulatory flexibility analysis as
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described in the RFA. See id. However,
if the agency determines that the
regulatory action would not be expected
to have a significant economic impact
on a substantial number of small
entities, then the head of the agency
may so certify and the RFA does not
require a regulatory flexibility analysis.
See 5 U.S.C. 605. The certification must
provide the factual basis for this
determination.
The proposed rescission will not have
a significant economic impact on a
substantial number of small entities
because the proposal will not impose
any costs. Accordingly, OFCCP certifies
that the proposed rescission will not
have a significant economic impact on
a substantial number of small entities.
C. Paperwork Reduction Act
The Paperwork Reduction Act of 1995
requires that OFCCP consider the
impact of paperwork and other
information collection burdens imposed
on the public. See 44 U.S.C. 3507(d). An
agency may not collect or sponsor the
collection of information or impose an
information collection requirement
unless the information collection
instrument displays a currently valid
OMB control number. See 5 CFR
1320.5(b)(1).
OFCCP has determined that there
would be no new requirement for
information collection associated with
this proposed rescission. Consequently,
this proposal does not require review by
OMB under the authority of the
Paperwork Reduction Act.
D. Unfunded Mandates Reform Act of
1995
For purposes of the Unfunded
Mandates Reform Act of 1995, 2 U.S.C.
1532, this proposed rescission would
not include any federal mandate that
may result in excess of $100 million in
expenditures by state, local, and tribal
governments in the aggregate or by the
private sector.
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E. Executive Order 13132 (Federalism)
OFCCP has reviewed this proposed
rescission in accordance with Executive
Order 13132 regarding federalism and
has determined that it would not have
‘‘federalism implications.’’ The
proposed regulatory action would not
‘‘have substantial direct effects on the
States, on the relationship between the
national government and the States, or
on the distribution of power and
responsibilities among the various
levels of government.’’
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F. Executive Order 13175 (Consultation
and Coordination With Indian Tribal
Governments)
DEPARTMENT OF THE INTERIOR
This proposed rescission would not
have tribal implications under
Executive Order 13175 that would
require a tribal summary impact
statement. The proposal would not
‘‘have substantial direct effects on one
or more Indian tribes, on the
relationship between the Federal
Government and Indian tribes, or on the
distribution of power and
responsibilities between the Federal
Government and Indian tribes.’’
50 CFR Part 17
List of Subjects in 41 CFR Part 60–1
Administrative practice and
procedure, Civil rights, Employment,
Equal employment opportunity,
Government contracts, Government
procurement, Investigations, Labor,
Reporting and recordkeeping
requirements.
Jenny R. Yang,
Director, Office of Federal Contract
Compliance Programs.
For the reasons set forth in the
preamble, OFCCP proposes to amend 41
CFR part 60–1 as follows:
PART 60–1—OBLIGATIONS OF
CONTRACTORS AND
SUBCONTRACTORS
1. The authority citation for part 60–
1 continues to read as follows:
■
Authority: Sec. 201, E.O. 11246, 30 FR
12319, 3 CFR, 1964–1965 Comp., p. 339, as
amended by E.O. 11375, 32 FR 14303, 3 CFR,
1966–1970 Comp., p. 684, E.O. 12086, 43 FR
46501, 3 CFR, 1978 Comp., p. 230, E.O.
13279, 67 FR 77141, 3 CFR, 2002 Comp., p.
258 and E.O. 13672, 79 FR 42971.
§ 60–1.3
[Amended]
2. Amend § 60–1.3 by removing the
following:
■ a. Definitions of ‘‘Particular religion,’’
‘‘Religion,’’ ‘‘Religious corporation,
association, educational institution, or
society,’’ and ‘‘Sincere.’’
■ b. Paragraphs (a) and (b).
■
§ 60–1.5
[Amended]
3. Amend § 60–1.5 by removing
paragraphs (e) and (f).
■
[FR Doc. 2021–24376 Filed 11–8–21; 8:45 am]
BILLING CODE 4510–CM–P
PO 00000
Frm 00010
Fmt 4702
Sfmt 4702
Fish and Wildlife Service
[Docket No. FWS–HQ–ES–2020–0114;
FF09E22000 FXES1111090FEDR 223]
RIN 1018–BD04
Endangered and Threatened Wildlife
and Plants; Threatened Species Status
With Section 4(d) Rule for Egyptian
Tortoise
Fish and Wildlife Service,
Interior.
ACTION: Proposed rule.
AGENCY:
We, the U.S. Fish and
Wildlife Service (Service), propose to
list the Egyptian tortoise (Testudo
kleinmanni), a terrestrial tortoise from
Libya, Egypt, and Israel, as a threatened
species under the Endangered Species
Act of 1973, as amended (Act). This
determination also serves as our 12month finding on a petition requesting
that the Egyptian tortoise be listed as an
endangered or threatened species under
the Act. After a review of the best
scientific and commercial information
available, we find that listing the
species is warranted. Accordingly, we
propose to list the Egyptian tortoise, as
a threatened species with a rule issued
under section 4(d) of the Act (‘‘4(d)
rule’’). If we finalize this rule as
proposed, it would add this species to
the List of Endangered and Threatened
Wildlife and extend the Act’s
protections to the species.
DATES: We will accept comments
received or postmarked on or before
January 10, 2022. Comments submitted
electronically using the Federal
eRulemaking Portal (see ADDRESSES,
below) must be received by 11:59 p.m.
Eastern Time on the closing date. We
must receive requests for a public
hearing, in writing, at the address
shown in FOR FURTHER INFORMATION
CONTACT by December 27, 2021.
ADDRESSES: You may submit comments
by one of the following methods:
(1) Electronically: Go to the Federal
eRulemaking Portal: https://
www.regulations.gov. In the Search box,
enter FWS–HQ–ES–2020–0114, which
is the docket number for this
rulemaking. Then, click on the Search
button. On the resulting page, in the
Search panel on the left side of the
screen, under the Document Type
heading, check the Proposed Rule box to
locate this document. You may submit
a comment by clicking on ‘‘Comment.’’
(2) By hard copy: Submit by U.S. mail
to: Public Comments Processing, Attn:
SUMMARY:
E:\FR\FM\09NOP1.SGM
09NOP1
Agencies
[Federal Register Volume 86, Number 214 (Tuesday, November 9, 2021)]
[Proposed Rules]
[Pages 62115-62122]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-24376]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF LABOR
Office of Federal Contract Compliance Programs
41 CFR Part 60-1
RIN 1250-AA09
Proposal To Rescind Implementing Legal Requirements Regarding the
Equal Opportunity Clause's Religious Exemption
AGENCY: Office of Federal Contract Compliance Programs, Labor.
ACTION: Notification of proposed rescission; request for comments.
-----------------------------------------------------------------------
SUMMARY: The Office of Federal Contract Compliance Programs (OFCCP) is
proposing 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.
DATES: Comments must be received on or before December 9, 2021.
ADDRESSES: You may submit comments, identified by RIN 1250-AA09, by any
of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Fax: (202) 693-1304 (for comments of six pages or less).
Mail: Tina Williams, Director, Division of Policy and
Program Development, Office of Federal Contract Compliance Programs,
Room C-3325, 200 Constitution Avenue NW, Washington, DC 20210.
Instructions: Please submit only one copy of your comments by only
one method. Commenters submitting file attachments on https://www.regulations.gov are advised that uploading text-recognized
documents--i.e., documents in a native file format or documents that
have undergone optical character recognition (OCR)--enable staff at the
Department to more easily search and retrieve specific content included
in your comment for consideration. Please be advised that comments
received will become a matter of public record and will be posted
without change to https://www.regulations.gov, including any personal
information provided. Commenters submitting comments by mail should
transmit comments early to ensure timely receipt prior to the close of
the comment period, as the Department continues to experience delays in
the receipt of mail.
Docket: For access to the docket to read background documents or
comments, go to the Federal eRulemaking Portal at https://www.regulations.gov. Copies of this notice of proposed rescission will
be made available, upon request, in the following formats: Large print,
Braille, audiotape, and disc. To obtain this notice of proposed
rescission in an alternate format, contact OFCCP at the telephone
numbers or address listed below.
FOR FURTHER INFORMATION CONTACT: Tina Williams, Director, Division of
Policy and Program Development, Office of Federal Contract Compliance
Programs, 200 Constitution Avenue NW, Room C-3325, Washington, DC
20210. Telephone: (202) 693-0104 (voice) or (202) 693-1337 (TTY).
SUPPLEMENTARY INFORMATION:
I. Background
OFCCP enforces Executive Order 11246, which requires federal
government contractors and subcontractors to provide equal employment
opportunity. Section 202 of Executive Order 11246, as amended, requires
that every non-exempt contract and subcontract include an equal
opportunity clause, which specifies the nondiscrimination and
affirmative action obligations each contractor or subcontractor assumes
as a condition of its government contract or subcontract. Among other
obligations, each contractor agrees, as a condition of its government
contract, not to discriminate in employment on the basis of race,
color, religion, sex, sexual orientation, gender identity, or national
origin. Executive Order 11246, as amended, and its predecessors reflect
the government's long-standing policy of requiring its contractors to
prevent discrimination and provide equal employment opportunity. See,
e.g., Exec. Order 8802, 6 FR 3109 (June 27, 1941) (``reaffirm[ing] the
policy of the
[[Page 62116]]
United States that there shall be no discrimination in the employment
of workers in defense industries or government because of race, creed,
color, or national origin''); Exec. Order 10479, 18 FR 4899 (Aug. 18,
1953) (reiterating ``the policy of the United States Government to
promote equal employment opportunity for all qualified persons employed
or seeking employment on government contracts because such persons are
entitled to fair and equitable treatment in all aspects of employment
on work paid for from public funds''); Exec. Order 10925, 26 FR 1977
(Mar. 8, 1961) (describing it as ``the plain and positive obligation of
the United States Government to promote and ensure equal opportunity
for all qualified persons, without regard to race, creed, color, or
national origin, employed or seeking employment with the Federal
Government and on government contracts''); Exec. Order 13672, 79 FR
42971 (July 23, 2014) (amending Executive Order 11246 to include sexual
orientation and gender identity to ``provide for a uniform policy for
the Federal Government to prohibit discrimination and take further
steps to promote economy and efficiency in Federal Government
procurement''). This policy effectuates the government's interest in
promoting economy and efficiency in federal procurement. See 40 U.S.C.
101 (providing for ``an economical and efficient [procurement]
system''); 40 U.S.C. 121(a) (authorizing the President to prescribe
policies and directives to carry out that aim); Contractors Ass'n of E.
Pa. v. Sec'y of Labor, 442 F.2d 159, 170 (3d Cir. 1971) (``[I]t is in
the interest of the United States in all procurement to see that its
suppliers are not over the long run increasing its costs and delaying
its programs by excluding from the labor pool available minority
work[ers].''). It also ensures that taxpayer funds are not used to
discriminate, especially in the performance of functions for the
government itself and, thus, for the public.
It is OFCCP's long-standing policy and practice, when analyzing
potential discrimination under Executive Order 11246, to follow the
principles of Title VII of the Civil Rights Act of 1964, which
prohibits employers from discriminating against applicants and
employees on the basis of race, color, religion, sex (including
pregnancy, sexual orientation, and gender identity), or national
origin. 42 U.S.C. 2000e-2; OFCCP v. Bank of Am., No. 13-099, Final
Decision & Order, 2016 WL 2892921, at *7 (ARB Apr. 21, 2016) (``[I]n
addition to relevant provisions of E.O. 11246, its implementing
regulations, and Department precedent, we also look to federal
appellate court decisions addressing similar pattern or practice claims
of intentional discrimination adjudicated under Title VII . . . .'');
OFCCP v. Greenwood Mills, Inc., Nos. 00-044, 01-089, Final Decision &
Order, 2002 WL 31932547, at *4 (ARB Dec. 20, 2002) (``The legal
standards developed under Title VII of the Civil Rights Act of 1964
apply to cases brought under [Executive Order 11246]''). As amended in
1972, Title VII contains an exemption for religious corporations,
associations, educational institutions, and societies with regard to
the employment of individuals of a particular religion to perform work
connected with their activities. Equal Employment Opportunity Act of
1972, Public Law 92-261, 3, 86 Stat. at 104 (codified at 42 U.S.C.
2000e-1(a)). In the decades since the enactment of the Title VII
religious exemption, a robust body of case law interpreting the
exemption has developed, establishing its scope and application.
In 2002, President George W. Bush amended Executive Order 11246 to
include, almost verbatim, Title VII's exemption for religious
organizations. Sec. 4, Exec. Order 13279, 67 FR 77143 (Dec. 16, 2002)
(codified at sec. 204(c), Exec. Order 11246). The amendment was
intended ``to ensure the economical and efficient administration and
completion of Government contracts.'' Id. The only substantive
difference between the text of the Title VII religious exemption and
that of the Executive Order 11246 religious exemption is that the
latter expressly provides that, although a government contractor or
subcontractor that is a religious corporation, association, educational
institution, or society is exempt from having to comply with section
202 (the equal opportunity clause of Executive Order 11246) ``with
respect to the employment of individuals of a particular religion,'' it
is ``not exempted or excused from complying with the other requirements
contained in this Order.'' Sec. 204(c), Exec. Order 11246. The text of
the Title VII religious exemption does not contain that express
proviso. However, the proviso is based on Title VII case law, which has
consistently held that the Title VII religious exemption permits
qualifying religious employers to employ individuals of a particular
religion but requires them to comply with Title VII's prohibitions
against discrimination on other protected bases. See, e.g., Kennedy v.
St. Joseph's Ministries, Inc., 657 F.3d 189, 192 (4th Cir. 2011); Cline
v. Catholic Diocese of Toledo, 206 F.3d 651, 658 (6th Cir. 2000);
DeMarco v. Holy Cross High Sch., 4 F.3d 166, 173 (2d Cir. 1993).
Further, the Executive Order 11246 proviso and the Title VII case
law on which it is based reflect Congress's intent that
nondiscrimination obligations based on other protected characteristics
continue to apply to religious employers. See 118 Cong. Rec. 7167
(1972) (Senate Managers' section-by-section analysis presented by Sen.
Williams) (``The limited exemption from coverage in this section for
religious corporations, associations, educational institutions or
societies has been broadened to allow such entities to employ
individuals of a particular religion in all their activities. . . .
Such organizations remain subject to the provisions of Title VII with
regard to race, color, sex or national origin.'') (emphasis added).
This limitation on the scope of the Title VII religious exemption has
long been recognized by the Department of Justice Office of Legal
Counsel. See Memorandum for William P. Marshall, Deputy Counsel to the
President, from Randolph D. Moss, Assistant Attorney General, Office of
Legal Counsel, Re: Application of the Coreligionists Exemption in Title
VII of the Civil Rights Act of 1964, 42 U.S.C. 2000e-1(a), to Religious
Organizations that Would Directly Receive Substance Abuse and Mental
Health Services Administration Funds Pursuant to Section 704 of H.R.
4923, the ``Community Renewal and New Markets Act of 2000'' at 30-32,
31 n.62 (Oct. 12, 2000), https://www.justice.gov/olc/page/file/936211/download.
In 2003, OFCCP published a final rule amending its Executive Order
11246 regulations to incorporate this religious exemption.\1\
Affirmative Action and Nondiscrimination Obligations of Government
Contractors, Executive Order 11246, as amended; Exemption for Religious
Entities, Final Rule, 68 FR 56392 (Sept. 30, 2003) (codified at 41 CFR
60-1.5(a)(5)). In the preamble to that rule, OFCCP explained that the
religious exemption recently added to Executive Order 11246 was
``modeled on'' the Title VII religious exemption. Id. In turn, OFCCP
noted, the new regulation itself ``directly tracks the
[[Page 62117]]
President's amendment to'' Executive Order 11246 and ``simply
incorporates'' the amendment in the regulation. Id. The preamble and
regulation did not provide further guidance regarding the scope or
application of the religious exemption. OFCCP continued its long-
standing policy and practice of applying Title VII principles and case
law when analyzing claims of discrimination under Executive Order
11246. OFCCP provided compliance assistance on the interpretation and
application of the religious exemption through hosting webinars and
publishing guidance on its website. In doing so, OFCCP abided by
relevant religious liberty authorities, including the Religious Freedom
Restoration Act (RFRA) and the ministerial exception mandated by the
religion clauses of the First Amendment; maintained a policy of
considering RFRA claims raised by contractors on a case-by-case basis;
and refrained from applying any regulatory requirement to a case in
which it would violate RFRA. See, e.g., OFCCP Compliance Webinar (Mar.
25, 2015), https://www.dol.gov/ofccp/LGBT/FTS_TranscriptEO13672_PublicWebinar_ES_QA_508c.pdf; OFCCP Frequently
Asked Questions: E.O. 13672 Final Rule (2015), archived at https://web.archive.org/web/20150709220056/ http:/www.dol.gov/ofccp/LGBT/LGBT_FAQs.html. OFCCP recommended that contractors with questions about
the applicability of the religious exemption to their employment
practices seek guidance from OFCCP. See, e.g., Discrimination on the
Basis of Sex, Final Rule, 81 FR 39108, 39120 (June 15, 2016).
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\1\ Since 1978, OFCCP's regulations implementing Executive Order
11246 have contained an exemption allowing certain educational
institutions to hire and employ individuals of a particular
religion. See Compliance Responsibility for Equal Employment
Opportunity: Consolidation of Functions Pursuant to Executive Order
12086, 43 FR 49240, 49243 (Oct. 20, 1978) (codified at 41 CFR 60-
1.5(a)(6)). This exemption is modeled on Title VII's exemption for
religiously affiliated educational institutions. See 42 U.S.C.
2000e-2(e).
---------------------------------------------------------------------------
In 2019, OFCCP proposed a rule purporting to clarify the scope and
application of the Executive Order 11246 religious exemption.
Implementing Legal Requirements Regarding the Equal Opportunity
Clause's Religious Exemption, Notice of Proposed Rulemaking, 84 FR
41677 (Aug. 25, 2019). The rule was finalized with some modifications
in 2020 and took effect on January 8, 2021.\2\ Implementing Legal
Requirements Regarding the Equal Opportunity Clause's Religious
Exemption, Final Rule, 85 FR 79324 (Dec. 9, 2020) (hereinafter ``2020
rule''). The 2020 rule does not alter the text of the religious
exemption at 41 CFR 60-1.5(a)(5); instead, it defines the terms
``particular religion''; ``religion''; ``religious corporation,
association, educational institution, or society''; and ``sincere.''
Id. at 79371-72 (codified at 41 CFR 60-1.3). The 2020 rule further
provides a rule of construction for all of subpart A of 41 CFR part 60-
1, specifying that the subpart must be construed in favor of the
broadest protection of religious exercise ``permitted by the U.S.
Constitution and law.'' Id. at 79372 (codified at 41 CFR 60-1.5(e)).
---------------------------------------------------------------------------
\2\ Shortly after it took effect, the religious exemption rule
was challenged in two district courts. New York v. U.S. Dep't of
Labor, No. 21-cv-00536 (S.D.N.Y. filed Jan. 21, 2021); Or.
Tradeswomen, Inc. v. U.S. Dep't of Labor, No. 21-cv-00089 (D. Or.
filed Jan. 21. 2021). Both matters have been stayed, and the courts
have not yet issued any substantive rulings.
---------------------------------------------------------------------------
The preamble to the 2020 rule accurately described section 204(c)
of Executive Order 11246 as ``expressly importing Title VII's exemption
for religious organizations'' and as ``spring[ing] directly from the
Title VII exemption.'' Id. at 79324. The preamble continued that the
Executive Order 11246 religious exemption should therefore ``be given a
parallel interpretation.'' Id. (citing Northcross v. Bd. of Educ. of
Memphis City Sch., 412 U.S. 427, 428 (1973) (per curiam) (``The
similarity of language in [two statutes] is, of course, a strong
indication that the two statutes should be interpreted pari passu.'').
Nevertheless, as discussed below, the 2020 rule departs from OFCCP's
long-standing reliance on Title VII principles and case law. In so
doing, the 2020 rule runs contrary to the intent of Executive Order
13279's amendment of Executive Order 11246 to incorporate the scope and
application of the Title VII religious exemption. OFCCP believes the
2020 rule's departures from Title VII principles and case law are
likely to increase rather than decrease confusion about the application
of the Executive Order 11246 religious exemption. Furthermore, to the
extent the 2020 rule reflects the previous Administration's policy
judgments regarding deviating from Title VII case law and principles,
the present Administration has evaluated the range of permissible
policy options and determined that a return to its traditional approach
of applying Title VII case law and principles will promote clarity and
consistency in the application of the exemption.
II. Proposal To Rescind
OFCCP proposes to rescind the regulations established in the 2020
rule in their entirety. OFCCP believes that the 2020 rule creates a
lack of clarity regarding the scope and application of the exemption
because, as explained in more detail below, it misstates the law in key
respects. In addition, as a threshold matter, OFCCP has reevaluated the
need for the rule. For the 17 years prior to 2020, OFCCP implemented
the Executive Order 11246 religious exemption without seeking to codify
its scope and application in specific regulatory language. Instead,
OFCCP included the language of the exemption in its regulations at 41
CFR 60-1.5(a)(5) and adopted a policy of applying Title VII case law as
it developed, with reference to relevant religious liberty authorities
where appropriate. Significantly, the agency already recognized that
the 2020 rule has ``no effect on the overwhelming majority of federal
contractors.'' 85 FR at 79367. OFCCP therefore believes that the 2020
rule is unnecessary and, for the same reason, that no affirmative
rulemaking to modify or replace the 2020 rule is needed at this time.
With this rescission, OFCCP would return to its traditional approach,
which recognizes the validity of applying the religious exemption in
section 204(c) of Executive Order 11246, as codified in OFCCP's
regulations at 41 CFR 60-1.5(a)(5), where it is supported by Title VII
principles and applicable law.
OFCCP also believes that the 2020 rule misstates the law in key
respects. Most notably, the 2020 rule creates its own religious
employer test, independent of Title VII case law interpreting the
identical term. The test adopted in the 2020 rule permits a contractor
whose purpose and/or character is not primarily religious to qualify
for the Executive Order 11246 religious exemption. This not only places
the rule in tension with the President's intent in expressly
incorporating the Title VII religious exemption into Executive Order
11246 in 2003 but also undermines the government's long-standing policy
of requiring that federal contractors provide equal employment
opportunity, subject to a religious exemption for contractors with
primarily religious purpose and character. See, e.g., Exec. Order 8802,
6 FR 3109; Exec. Order 10479, 18 FR 4899; Exec. Order 10925, 26 FR
1977; Exec. Order 13279, 67 FR 77143; Exec. Order 13672, 79 FR 42971.
In addition, the 2020 rule retreats from the general principle that
qualifying religious employers are prohibited from taking employment
actions that amount to discrimination on the basis of protected
characteristics other than religion, even if the decisions are made for
sincerely held religious reasons. In so doing, the 2020 rule disregards
the text of Executive Order 11246, undermines the government's interest
in ensuring equal employment opportunity by federal contractors, and
deviates from Congress's understanding of how the Title VII religious
exemption should operate--an understanding courts have confirmed in
Title VII cases.
[[Page 62118]]
Finally, the preamble to the 2020 rule appeared to promote a
categorical approach to the analysis of RFRA claims. OFCCP believes
this categorical approach is inappropriate because it extends
exemptions more broadly than RFRA requires and fails to allow
sufficient flexibility to weigh competing governmental and third-party
interests against the interests of individuals asserting religious
exemptions. Cf., e.g., Cutter v. Wilkinson, 544 U.S. 709, 720 (2005)
(``Properly applying [the Religious Land Use and Institutionalized
Persons Act, to which ``Congress carried over from RFRA the `compelling
governmental interest''/``least restrictive means' standard,'' id. at
716], courts must take adequate account of the burdens a requested
accommodation may impose on nonbeneficiaries . . . .''). As the Court
recognized in Fulton v. City of Philadelphia, 141 S. Ct. 1868 (2021),
the government has a ``weighty'' interest in enforcing
nondiscrimination protections.
As it did prior to implementation of the 2020 rule, if the rule is
rescinded, OFCCP would continue to follow Title VII principles and case
law; would continue to apply the First Amendment and RFRA to the facts
and circumstances of each case, where applicable; and would offer
compliance assistance as needed with regard to the proper scope and
application of the Executive Order 11246 religious exemption.
A. Reasons for Rescission of the Rule
1. Unprecedented Religious Employer Test
The entities entitled to the religious exemption as codified by
OFCCP's 2020 rule are the comparatively few contractors and
subcontractors (and potential contractors and subcontractors) that meet
the regulatory definition of ``religious corporation, association,
educational institution, or society.'' See 85 FR at 79371-72 (codified
at 41 CFR 60-1.3), 79367 (``[T]his rule will have no effect on the
overwhelming majority of federal contractors.'').\3\ Because that term
is borrowed directly from the Title VII religious exemption at 42
U.S.C. 2000e-1(a), there is extensive Title VII case law interpreting
the term--case law that has historically guided OFCCP (and contractors
themselves) in determining whether an employer is entitled to the
Executive Order 11246 religious exemption. Although there is no uniform
test that all courts use, the ultimate inquiry focuses on whether the
employer's purpose and character are primarily religious--a
determination typically made by weighing some or all of the following
factors:
---------------------------------------------------------------------------
\3\ OFCCP's records indicate that since 2004, the earliest date
for which it has records, and continuing to the present, no
contractor has invoked the religious exemption.
(1) Whether the entity operates for a profit, (2) whether it
produces a secular product, (3) whether the entity's articles of
incorporation or other pertinent documents state a religious
purpose, (4) whether it is owned, affiliated with or financially
supported by a formally religious entity such as a church or
synagogue, (5) whether a formally religious entity participates in
the management, for instance by having representatives on the board
of trustees, (6) whether the entity holds itself out to the public
as secular or sectarian, (7) whether the entity regularly includes
prayer or other forms of worship in its activities, (8) whether it
includes religious instruction in its curriculum, to the extent it
is an educational institution, and (9) whether its membership is
---------------------------------------------------------------------------
made up by coreligionists.
LeBoon v. Lancaster Jewish Cmty. Ctr., 503 F.3d 217, 226 (3d Cir.
2007); see also, e.g., Garcia v. Salvation Army, 918 F.3d 997, 1003
(9th Cir. 2019); Spencer v. World Vision, Inc., 633 F.3d 723, 724 (9th
Cir. 2011) (per curiam); Hall v. Baptist Mem'l Health Care Corp., 215
F.3d 618, 624 (6th Cir. 2000); Killinger v. Samford Univ., 113 F.3d
196, 198-99 (11th Cir. 1997)).
OFCCP's 2020 rule, however, adopted a religious employer test that
largely did not account for these precedents--including the ultimate
requirement that the employer's purpose and character be primarily
religious--and instead adopted a test that no court has applied under
Title VII. 85 FR 79371 (codified at 41 CFR 60-1.3).
The preamble to the 2020 rule explained that OFCCP was taking this
approach because it found fault with the federal appellate courts'
``confusing variety of tests, [which] themselves often involve unclear
or constitutionally suspect criteria.'' 85 FR at 79331. The agency
commended two concurring opinions in Spencer v. World Vision for
recognizing that ``assess[ing] the religiosity of an organization's
various characteristics[ ] can lead the court into a `constitutional
minefield.' '' 84 FR at 41681 (quoting Spencer, 633 F.3d at 730
(O'Scannlain, J., concurring), and citing Spencer, 633 F.3d at 741
(Kleinfeld, J., concurring)); see also 85 FR at 79361. Yet, as the
preamble acknowledged, the 2020 rule itself does not even incorporate
any of the religious employer tests set forth in the World Vision
opinions. Rather, it adopts a definition of Title VII's term
``religious corporation, association, educational institution, or
society'' that does not require an inquiry into whether a contractor is
``primarily religious'' because that inquiry, the preamble argued,
requires ``comparison between the amount of religious and secular
activity at an organization.'' 85 FR at 79336.
In this respect, the 2020 rule deviates from established Title VII
interpretations and creates its own new test.\4\ No court has ever
applied a standard under which a for-profit employer whose purpose and
character are not primarily religious could be eligible for the Title
VII religious exemption.\5\ Yet under the 2020 rule, contrary to
decades of Title VII case law, just such a for-profit contractor may
qualify for the religious exemption.
---------------------------------------------------------------------------
\4\ Moreover, the 2020 rule departs even from the Title VII
opinions that it purports to follow, rejecting both the prerequisite
that the entity be a nonprofit, Spencer, 633 F.3d at 734
(O'Scannlain, J., concurring), and an alternative requirement that
the entity ``not engage primarily or substantially in the exchange
of goods or services for money beyond nominal amounts,'' id. at 748
(Kleinfeld, J., concurring). See 85 FR at 79331-32. Of course, both
of these alternatives themselves are outliers from Title VII case
law, which gives weight to an entity's nonprofit status as one
factor in the multifactor analysis but does not treat it as an
absolute prerequisite, and does not consider as a factor at all
whether the entity engages in exchanges of more than nominal
amounts. See, e.g., LeBoon, 503 F.3d at 226; Hall, 215 F.3d at 624;
Killinger, 113 F.3d at 198-99.
\5\ Significantly, the Supreme Court has considered and upheld
the Title VII religious exemption against an Establishment Clause
challenge only as applied ``to the secular nonprofit activities of
religious organizations.'' Corp. of the Presiding Bishop of the
Church of Jesus Christ of Latter-day Saints v. Amos, 483 U.S. 327,
330 (1987) (emphasis added). It remains an open question whether and
under what circumstances it would be constitutional to apply the
Title VII exemption to for-profit enterprises. See Spencer, 633 F.3d
at 734 n. 13 (O'Scannlain, J., concurring) (``In Amos, the Supreme
Court expressly left open the question of whether a for-profit
entity could ever qualify for a Title VII exemption.'' (citing 483
U.S. at 349 (O'Connor, J., concurring))). The vast majority of
federal contractors are for-profit entities that have never been
deemed to qualify as religious corporations, associations,
educational institutions, or societies.
---------------------------------------------------------------------------
With this rescission, OFCCP would return to its previous approach,
which would preserve the availability of the Executive Order 11246
religious exemption for employers whose purpose and character are
primarily religious, and would consider the applicability of the
religious exemption to the facts of each case in accordance with Title
VII case law. Recognizing as exempt only those contractors that have a
primarily religious purpose and character would provide contractors and
potential contractors with the clarity of a single religious employer
test under both Executive Order 11246 and Title VII.
Thus, upon reconsideration, OFCCP views the 2020 rule's departure
from
[[Page 62119]]
Title VII precedent as both unsupported and confusing due to its
creation of a religious employer test that has never before been
applied. The substantial body of case law in which courts--including
the Ninth Circuit post-World Vision--have applied the traditional Title
VII test to identify employers with primarily religious purpose and
character without infringing on employers' religious liberties
undermines the 2020 rule's assertion that OFCCP needed to abandon a
``primarily religious'' inquiry to avoid purported constitutional
minefields. See, e.g., Garcia, 918 F.3d 997; LeBoon, 503 F.3d 217;
Hall, 215 F.3d 618; Killinger, 113 F.3d 196. Moreover, OFCCP is
concerned that the 2020 rule's definition of ``religious corporation,
association, educational institution, or society,'' in departing from
the interpretation of that term under Title VII, may decrease
procurement efficiency and increase uncertainty within the contracting
community about the applicability of the religious exemption. Further,
OFCCP is concerned that extending the religious exemption to
contractors whose purpose and character are not primarily religious
runs contrary to the government's long-standing equal employment
opportunity policy for federal contractors. Most important, the
definition adopted by the 2020 rule is inconsistent with the
President's decision in Executive Order 13279 to incorporate Title VII
doctrine as the touchstone for the Executive Order 11246 religious
exemption.
2. Exemption of Unlawful Employment Actions
Under both Executive Order 11246 section 204(c) and Title VII at 42
U.S.C. 2000e-1(a), qualifying religious organizations are permitted to
make decisions ``with respect to the employment of individuals of a
particular religion.'' The 2020 rule's definition of ``particular
religion'' authorizes the contractor to require, as a condition of
employment, the applicant's or employee's ``acceptance of or adherence
to sincere religious tenets as understood by the employer.'' 85 FR at
79371 (codified at 41 CFR 60-1.3). The weight of Title VII case law
reflects that qualifying religious employers generally may make
decisions about whether to employ individuals based on acceptance of
and adherence to religious tenets, as long as those decisions do not
violate the other nondiscrimination provisions of Title VII, apart from
the prohibition on religious discrimination. See, e.g., Kennedy, 657
F.3d at 190-92 (stating that Title VII's religious exemption does not
exempt religious organizations from complying with prohibitions on
race, sex, or national origin discrimination, but holding that a
Catholic nursing center's termination of a nursing assistant based on
her non-Catholic religious attire was permissibly based on religion and
not other protected bases); Little v. Wuerl, 929 F.2d 944, 946-48 (3d
Cir. 1991) (stating that Title VII bars, for example, race and sex
discrimination against non-minister employees, but holding that a
Catholic school's decision not to rehire a teacher based on her
remarriage without validation by the Catholic Church was permissibly
based on religion). However, under the 2020 rule as explained in the
preamble, the agency would not enforce Executive Order 11246 against a
contractor for an adverse employment action motivated ``solely'' by its
sincerely held religious tenets, even when the contractor's actions
violate another nondiscrimination prohibition of Executive Order 11246
(other than race, as discussed below). Id. at 79350; cf. id. at 79356
(``OFCCP will enforce E.O. 11246 against any contractor or
subcontractor that takes employment actions on the basis of race, even
if religiously motivated.''). As an example, the preamble noted that a
religious organization might maintain ``sincerely held religious tenets
regarding matters such as marriage and intimacy which may implicate
certain protected classes.'' Id. at 79364.
Upon reconsideration, OFCCP is concerned that the 2020 rule's
suggestion that qualifying religious organizations may be broadly
exempted from Executive Order 11246's nondiscrimination requirements is
contrary to the text of the religious exemption itself, which permits
the contractor to discriminate on the basis of religion in favor of
``individuals of a particular religion'' while expressly not exempting
or excusing the contractor from the other requirements of Executive
Order 11246. Sec. 204(c), Exec. Order 11246. It is also contrary to
well-established Title VII case law. See, e.g., Kennedy, 657 F.3d at
192 (``Section 2000e-1(a) does not exempt religious organizations from
Title VII's provisions barring discrimination on the basis of race,
gender, or national origin.''); Cline, 206 F.3d at 658 (``[W]hile Title
VII exempts religious organizations for `discrimination based on
religion,' it does not exempt them `with respect to all discrimination.
. . . [ ] Title VII still applies . . . to a religious institution
charged with sex discrimination.'') (quoting Boyd v. Harding Acad. of
Memphis, Inc., 88 F.3d 410, 413 (6th Cir. 1996)); DeMarco, 4 F.3d at
173 (``[R]eligious institutions that otherwise qualify as `employer[s]'
are subject to Title VII provisions relating to discrimination based on
race, gender and national origin.''). Further, as the Department of
Justice has explained with regard to Title VII, Congress clearly
intended for qualifying religious employers to ``remain subject to the
provisions of Title VII with regard to race, color, sex or national
origin.'' Memorandum for William P. Marshall, Deputy Counsel to the
President, from Randolph D. Moss, Assistant Attorney General, Office of
Legal Counsel, Re: Application of the Coreligionists Exemption in Title
VII of the Civil Rights Act of 1964, 42 U.S.C. 2000e-1(a), to Religious
Organizations that Would Directly Receive Substance Abuse and Mental
Health Services Administration Funds Pursuant to Section 704 of H.R.
4923, the ``Community Renewal and New Markets Act of 2000'' (Oct. 12,
2000), https://www.justice.gov/olc/page/file/936211/download (quoting
Senate managers' analysis, id. at 31, and numerous cases, id. at 30-32
& n.62).
Accordingly, courts typically have rejected claims that qualifying
religious employers are exempt from Title VII's other nondiscrimination
provisions where the employers claim that their actions were based on
sincere religious beliefs and tenets. In Herx v. Diocese of Ft. Wayne-
S. Bend, Inc., for example, the Seventh Circuit dismissed a Catholic
elementary school's appeal of an order denying summary judgment, thus
requiring adjudication of a language arts teacher's claim that the
school's application of the church's ban on in vitro fertilization
discriminated against women because only women undergo the procedure.
772 F.3d 1085, 1091 (7th Cir. 2014). The Seventh Circuit observed that
``[t]he district court has not ordered a religious question submitted
to the jury for decision'' and confirmed that the jury would be
instructed ``not to weigh or evaluate the Church's doctrine regarding
in vitro fertilization.'' Id.; see also, e.g., Cline, 206 F.3d at 667
(reversing the district court's grant of summary judgment to a
religious school on the sex discrimination claim of a preschool teacher
allegedly fired for violating the religious school's policy against
extramarital sex, noting that the plaintiff was entitled to ``pursue
several avenues of discovery,'' including seeking evidence ``that St.
Paul enforced its premarital sex policy in a discriminatory manner--
against only pregnant women, or against only
[[Page 62120]]
women''); Maguire v. Marquette Univ., 814 F.2d 1213, 1218 (7th Cir.
1987) (adjudicating the sex discrimination claim of an associate
professor of theology not hired by a religious university based on
``her perceived hostility to the institutional church and its
teachings,'' particularly with regard to abortion, but affirming
dismissal because the employer would have rejected a male applicant who
held similar views about abortion).
To be sure, the Constitution imposes some constraints on
nondiscrimination laws such as Title VII, even apart from the statutory
accommodation for religious organizations. For example, the religion
clauses of the First Amendment create a ``ministerial exception'' from
certain nondiscrimination laws, including Title VII, for positions of
particular religious significance in certain religious organizations.
See Our Lady of Guadalupe Sch. v. Morrissey-Berru, 140 S. Ct. 2049
(2020); Hosanna-Tabor Evangelical Lutheran Church & Sch. v. EEOC, 565
U.S. 171 (2012). Where the ministerial exception applies, ``judicial
intervention into disputes between the [religious organization] and the
[employee] threatens the [religious organization's] independence in a
way that the First Amendment does not allow.'' Our Lady of Guadalupe
Sch., 140 S. Ct. at 2069.
And where a religious organization applies a ``religious tenets''
requirement under Title VII's religious exemption, courts and agencies
must be careful not to unduly interrogate the plausibility of the
religious justification in assessing whether the religious tenets claim
is a pretext for some other, impermissible form of employment
discrimination. See, e.g., Curay-Cramer v. Ursuline Acad. of
Wilmington, Delaware, Inc., 450 F.3d 130, 141 (3d Cir. 2006);
Mississippi College, 626 F.2d at 485; Little v. Wuerl, 929 F.2d 944,
948 (3d Cir. 1991).
As the Supreme Court recognized in Bostock, however, ``how these
doctrines protecting religious liberty interact with Title VII are
questions for future cases.'' Bostock v. Clayton Cnty., 140 S. Ct.
1731, 1754 (2020). In Bostock, the Court explained:
[W]orries about how Title VII may intersect with religious liberties
are nothing new; they even predate the statute's passage. As a
result of its deliberations in adopting the law, Congress included
an express statutory exception for religious organizations. Sec.
2000e-1(a). This Court has also recognized that the First Amendment
can bar the application of employment discrimination laws ``to
claims concerning the employment relationship between a religious
institution and its ministers.'' And Congress has gone a step
further yet in [RFRA]. . . . Because RFRA operates as a kind of
super statute, displacing the normal operation of other federal
laws, it might supersede Title VII's commands in appropriate cases.
Id. (quoting Hosanna-Tabor, 565 U.S. at 188).
These possible context-specific constitutional and statutory
limits, however, do not affect the general rule under both Executive
Order 11246 and relevant Title VII case law to date: The religious
exemption does not permit qualifying employers to make employment
decisions about non-ministerial positions that amount to discrimination
on the basis of protected characteristics other than religion, even if
those decisions are based on sincere religious beliefs and tenets.
Thus, OFCCP now believes that, in purporting to establish a
categorical exemption for religious organizations from Executive Order
11246's requirements of nondiscrimination on other protected bases when
making employment decisions based on sincere religious beliefs, the
2020 rule conflicts with the text of Executive Order 11246 and does not
comport with the weight of Title VII case law. OFCCP is also concerned
that the 2020 rule's definition of ``particular religion,'' together
with the discussion in the preamble, could decrease procurement
efficiency by setting forth an unclear standard that purports to exempt
a broader range of employment actions than is covered by the plain
language of the religious exemption. Finally, OFCCP is concerned that
the religious exemption thus broadened by the 2020 rule is inconsistent
with the government's interest in ensuring equal employment opportunity
by federal contractors.
3. Inappropriately Categorical Approach to RFRA Analysis
The rule of construction added in the 2020 rule at 41 CFR 60-1.5(e)
requires that subpart A of 41 CFR part 60-1 be construed in favor of
the broadest lawful protection of religious exercise. See 85 FR at
79372. Applying that rule of construction, the preamble to the 2020
rule described how RFRA would ``guide the agency's determination if and
when a particular case presents a situation where a religiously
motivated employment action implicates a classification protected under
the Executive Order.'' 85 FR at 79350. In that discussion, the preamble
expressed certain views about RFRA's application that were both
questionable and not pertinent to the proper construction of Executive
Order 11246.
RFRA provides that when application of a federal government rule or
other law would substantially burden a person's exercise of religion,
the government must afford that person an exemption to the rule unless
it can demonstrate that applying the burden to that person furthers a
compelling governmental interest and is the least restrictive means of
doing so. 42 U.S.C. 2000bb-1(b). Prior to the 2020 rule, recognizing
that ``claims under RFRA are inherently individualized and fact
specific,'' OFCCP's express policy was to consider RFRA claims, if they
ever arose, based on the facts of the particular case, and to refrain
from applying any regulatory requirement that would violate RFRA.
Discrimination on the Basis of Sex, Final Rule, 81 FR at 39119; see
also 85 FR at 79353; OFCCP Frequently Asked Questions: Religious
Employers and Religious Exemption, https://www.dol.gov/agencies/ofccp/faqs/religious-employers-exemption).
The preamble to the 2020 rule, however, announced that OFCCP ``has
less than a compelling interest in enforcing E.O. 11246 when a
religious organization takes employment action solely on the basis of
sincerely held religious tenets that also implicate a protected
classification, other than race.'' 85 FR at 79354. The preamble
repeatedly mentioned marriage and sexual intimacy as likely subjects of
such religious beliefs requiring accommodation, see id. at 79349,
79352, 79364, suggesting that protection from discrimination on the
bases of sex, sexual orientation, and gender identity in particular
could be compromised under this analysis.\6\ Executive Order 11246,
however, lists all the protected bases on equal terms, making no
distinction among them. See, e.g., sec. 202(1), Exec. Order 11246.
---------------------------------------------------------------------------
\6\ By contrast, the present Administration has committed to a
policy of fully enforcing laws prohibiting discrimination based on
sexual orientation and gender identity and protecting religious
freedom. See, e.g., sec. 1, Exec. Order 14015, 86 FR 10007 (Feb. 14,
2021); sec. 1, Exec. Order 13988, 86 FR 7023 (Jan. 25, 2021).
---------------------------------------------------------------------------
Since the 2020 rule's publication, the Court has reemphasized the
inadequacy of a categorical approach to defining the government's
compelling interest in the broader context of nondiscrimination
enforcement: ``The question . . . is not whether the [government] has a
compelling interest in enforcing its non-discrimination policies
generally, but whether it has such an interest in denying an exception
to [the particular religious claimant].'' Fulton, 141 S. Ct. at 1881.
It is beyond dispute that the government's interests in preventing
[[Page 62121]]
and remedying the harms of discrimination, and in ensuring equal
employment opportunity, are ``weighty.'' Id. at 1882. But especially in
light of Fulton, OFCCP believes it is appropriate to ground any
compelling interest assessment in the specific facts presented by
particular religious claimants, an individualized analysis that cannot
properly be conducted in the context of a rulemaking, where it is not
possible to weigh competing governmental and third-party interests in a
particular case.
Therefore, upon reconsideration, OFCCP believes that the correct
approach is to return to considering any RFRA claims raised by
contractors on a case-by-case basis, without announcing any categorical
conclusions about hypothetical RFRA claims related to Executive Order
11246's nondiscrimination obligations.
B. Effect of Rescission
OFCCP remains committed to protecting religious freedom in
accordance with applicable law. If the 2020 rule is rescinded as
proposed here, OFCCP will return to its policy and practice of
interpreting and applying the religious exemption in section 204(c) of
Executive Order 11246, as codified in OFCCP's regulations at 41 CFR 60-
1.5(a)(5), in accordance with Title VII principles and case law. In so
doing, OFCCP will abide by relevant religious liberty authorities,
including the ministerial exception mandated by the religion clauses of
the First Amendment. OFCCP will return to its policy of considering any
RFRA claims raised by contractors on a case-by-case basis and
refraining from applying any regulatory requirement to a case in which
it would violate RFRA. If the 2020 rule is rescinded, nothing in that
rule or its preamble could be relied on as a statement of OFCCP's
interpretation or application of the Executive Order 11246 religious
exemption or relevant religious liberty authorities. OFCCP will
continue to provide any needed compliance assistance on the religious
exemption through various means.
OFCCP invites any interested party to comment on the proposal to
rescind the 2020 rule.
III. Regulatory Procedures
A. Executive Order 12866 (Regulatory Planning and Review) and Executive
Order 13563 (Improving Regulation and Regulatory Review)
Under Executive Order 12866, OMB's Office of Information and
Regulatory Affairs (OIRA) determines whether a regulatory action is
significant and, therefore, subject to the requirements of Executive
Order 12866 and OMB review. Section 3(f) of Executive Order 12866
defines a ``significant regulatory action'' as an action that is likely
to result in a rule that: (1) Has an annual effect on the economy of
$100 million or more, or adversely affects in a material way a sector
of the economy, productivity, competition, jobs, the environment,
public health or safety, or State, local, or tribal governments or
communities (also referred to as economically significant); (2) creates
serious inconsistency or otherwise interferes with an action taken or
planned by another agency; (3) materially alters the budgetary impacts
of entitlement grants, user fees, or loan programs, or the rights and
obligations of recipients thereof; or (4) raises novel legal or policy
issues arising out of legal mandates, the President's priorities, or
the principles set forth in Executive Order 12866. This proposed
rescission has been designated a ``significant regulatory action,''
although not economically significant, under section 3(f) of Executive
Order 12866. The Office of Management and Budget has reviewed this
proposed rescission.
Executive Order 13563 directs agencies to adopt a regulation only
upon a reasoned determination that its benefits justify its costs;
tailor the regulation to impose the least burden on society, consistent
with obtaining the regulatory objectives; and in choosing among
alternative regulatory approaches, select those approaches that
maximize net benefits. Executive Order 13563 recognizes that some
benefits are difficult to quantify and provides that, where appropriate
and permitted by law, agencies may consider and discuss qualitatively
values that are difficult or impossible to quantify, including equity,
human dignity, fairness, and distributive impacts.
1. The Need for the Rescission
The proposed rescission of the 2020 rule is needed to enable OFCCP
to properly apply and enforce Executive Order 11246 by returning to its
policy and practice of interpreting and applying the religious
exemption contained in section 204(c) of Executive Order 11246
consistent with Title VII principles and case law.
2. Discussion of Impacts
The proposed rescission does not include any costs because it would
add no new compliance requirements for contractors. The proposal would
remove the definitions of Particular religion; Religion; Religious
corporation, association, educational institution, or society; and
Sincere from 41 CFR 60-1.3; remove paragraphs (a) and (b) from 41 CFR
60-1.3; and remove paragraphs (e) and (f) from 41 CFR 60-1.5.
The proposed rescission would not include any cost savings. The
only quantitative cost assessed in the 2020 rule was for rule
familiarization. This was a one-time cost assessed on contractors at
the time of publication of the final rule.
3. Benefits
Executive Order 13563 recognizes that some rules have benefits that
are difficult to quantify or monetize but are nevertheless important,
and states that agencies may consider such benefits. Those benefits
include equity and fairness. This proposed rescission would promote
economy and efficiency in federal procurement by preventing the
arbitrary exclusion of qualified and talented employees on the basis of
characteristics that have nothing to do with their ability to do work
on government contracts. It also ensures that taxpayer funds are not
used to discriminate. It would also ensure that federal contractors
provide equal employment opportunity on all protected bases. Finally,
it would provide clarity and consistency for contractors and would-be
contractors that are religious corporations, associations, educational
institutions, and societies: Those with a primarily religious purpose
and character, that are eligible for the Title VII religious exemption,
are also eligible for the Executive Order 11246 religious exemption.
B. Regulatory Flexibility Act and Executive Order 13272 (Consideration
of Small Entities)
The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601 et seq.,
establishes ``as a principle of regulatory issuance that agencies shall
endeavor, consistent with the objectives of the rule and applicable
statutes, to fit regulatory and informational requirements to the scale
of the businesses, organizations, and governmental jurisdictions
subject to regulation.'' Public Law 96-354, section 2(b). The RFA
requires agencies to consider the impact of a regulatory action on a
wide range of small entities, including small businesses, nonprofit
organizations, and small governmental jurisdictions.
Agencies must review whether a regulatory action would have a
significant economic impact on a substantial number of small entities.
See 5 U.S.C. 603. If the regulatory action would, then the agency must
prepare a regulatory flexibility analysis as
[[Page 62122]]
described in the RFA. See id. However, if the agency determines that
the regulatory action would not be expected to have a significant
economic impact on a substantial number of small entities, then the
head of the agency may so certify and the RFA does not require a
regulatory flexibility analysis. See 5 U.S.C. 605. The certification
must provide the factual basis for this determination.
The proposed rescission will not have a significant economic impact
on a substantial number of small entities because the proposal will not
impose any costs. Accordingly, OFCCP certifies that the proposed
rescission will not have a significant economic impact on a substantial
number of small entities.
C. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 requires that OFCCP consider
the impact of paperwork and other information collection burdens
imposed on the public. See 44 U.S.C. 3507(d). An agency may not collect
or sponsor the collection of information or impose an information
collection requirement unless the information collection instrument
displays a currently valid OMB control number. See 5 CFR 1320.5(b)(1).
OFCCP has determined that there would be no new requirement for
information collection associated with this proposed rescission.
Consequently, this proposal does not require review by OMB under the
authority of the Paperwork Reduction Act.
D. Unfunded Mandates Reform Act of 1995
For purposes of the Unfunded Mandates Reform Act of 1995, 2 U.S.C.
1532, this proposed rescission would not include any federal mandate
that may result in excess of $100 million in expenditures by state,
local, and tribal governments in the aggregate or by the private
sector.
E. Executive Order 13132 (Federalism)
OFCCP has reviewed this proposed rescission in accordance with
Executive Order 13132 regarding federalism and has determined that it
would not have ``federalism implications.'' The proposed regulatory
action would not ``have substantial direct effects on the States, on
the relationship between the national government and the States, or on
the distribution of power and responsibilities among the various levels
of government.''
F. Executive Order 13175 (Consultation and Coordination With Indian
Tribal Governments)
This proposed rescission would not have tribal implications under
Executive Order 13175 that would require a tribal summary impact
statement. The proposal would not ``have substantial direct effects on
one or more Indian tribes, on the relationship between the Federal
Government and Indian tribes, or on the distribution of power and
responsibilities between the Federal Government and Indian tribes.''
List of Subjects in 41 CFR Part 60-1
Administrative practice and procedure, Civil rights, Employment,
Equal employment opportunity, Government contracts, Government
procurement, Investigations, Labor, Reporting and recordkeeping
requirements.
Jenny R. Yang,
Director, Office of Federal Contract Compliance Programs.
For the reasons set forth in the preamble, OFCCP proposes to amend
41 CFR part 60-1 as follows:
PART 60-1--OBLIGATIONS OF CONTRACTORS AND SUBCONTRACTORS
0
1. The authority citation for part 60-1 continues to read as follows:
Authority: Sec. 201, E.O. 11246, 30 FR 12319, 3 CFR, 1964-1965
Comp., p. 339, as amended by E.O. 11375, 32 FR 14303, 3 CFR, 1966-
1970 Comp., p. 684, E.O. 12086, 43 FR 46501, 3 CFR, 1978 Comp., p.
230, E.O. 13279, 67 FR 77141, 3 CFR, 2002 Comp., p. 258 and E.O.
13672, 79 FR 42971.
Sec. 60-1.3 [Amended]
0
2. Amend Sec. 60-1.3 by removing the following:
0
a. Definitions of ``Particular religion,'' ``Religion,'' ``Religious
corporation, association, educational institution, or society,'' and
``Sincere.''
0
b. Paragraphs (a) and (b).
Sec. 60-1.5 [Amended]
0
3. Amend Sec. 60-1.5 by removing paragraphs (e) and (f).
[FR Doc. 2021-24376 Filed 11-8-21; 8:45 am]
BILLING CODE 4510-CM-P