Yesterday, the President's executive order (EO) banning discrimination against lesbian, gay, bisexual, and transgender (LGBT) in the workplace went into effect. The EO prohibits federal contractors from discriminating on the basis of sexual orientation or gender identity when hiring and also prohibits companies that receive contract(s) from the Federal Government from discriminating against their LGBT employees.
According to Anne Rung, Administrator for Federal Procurement Policy under the Office of Management and Budget, this EO "not only assures that LGBT Americans have a more inclusive environment to work and flourish, but also better positions our contracting community to attract and retain the best talent."
Rung also noted that a majority of federal contractors already have policies on the books on LGBT workplace equality. Of the largest 50 federal contractors, representing half of all procurement dollars, 43 of them (86 percent) prohibit sexual orientation discrimination and 31 of them (61 percent) prohibit discrimination based on gender identity. With coverage this good, one wonders why the need for an EO in the first place.
The EO applies to Federal contractors, federally-assisted construction contractors, and subcontractors who perform more than $10 thousand in Federal Government business in any one year. Penalties for noncompliance with the EO could include contract termination.
You can read more about this EO and its implementing regulations by clicking here.