PART III-NONDISCRIMINATION PROVISIONS IN FEDERALLY ASSISTED CONSTRUCTION CONTRACTS SEC. 301. Each executive department and agency which administers a program involving Federal financial assistance shall require as a condition for the approval of any grant, contract, loan, insurance, or guarantee thereunder, which may involve a construction contract, that the applicant for Federal assistance undertake and agree to incorporate, or cause to be incorporated, into all construction contracts paid for in whole or in part with funds obtained from the Federal Government or borrowed on the credit of the Federal Government pursuant to such grant, contract, loan, insurance, or guarantee, or undertaken pursuant to any Federal program involving such grant, contract, loan, insurance, or guarantee, the provisions prescribed for Government contracts by Section 203 of this Order or such modification thereof, preserving in substance the contractor's obligations thereunder, as may be approved by the Secretary of Labor, together with such additional provisions as the Secretary deems appropriate to establish and protect the interest of the United States in the enforcement of those obligations. Each such applicant shall also undertake and agree (1) to assist and cooperate actively with the administering department or agency and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with those contract provisions and with the rules, regulations, and relevant orders of the Secretary, (2) to obtain and to furnish to the administering department or agency and to the Secretary of Labor such information as they may require for the supervision of such compliance, (3) to carry out sanctions and penalties for violation of such obligations imposed upon contractors and subcontractors by the Secretary of Labor or the administering department or agency pursuant to Part II, Subpart D, of this Order, and (4) to refrain from entering into any contract subject to this Order, or extension or other modification of such a contract with a contractor debarred from Government contracts under Part II, Subpart D, of this Order. SEC. 302. (a) "Construction contract" as used in this Order means any contract for the construction, rehabilitation, alteration, conversion, extension, or repair of buildings, highways, or other improvements to real property. (b) The provisions of Part II of this Order shall apply to such construction. contracts, and for purposes of such application the administering department or agency shall be considered the contracting agency referred to therein. (c) The term "applicant" as used in this Order means an applicant for Federal assistance or, as determined by agency regulation, other program participant, with respect to whom an application for any grant, contract, loan, insurance, or guarantee is not finally acted upon prior to the effective date of this Part, and it includes such an applicant after he becomes a recipient of such Federal assist ance. SEC. 303. (a) Each administering department and agency shall be responsible for obtaining the compliance of such applicants with their undertakings under this Order. Each administering department and agency is directed to cooperate with the Secretary of Labor, and to furnish the Secretary such information and assistance as he may require in the performance of his functions under this Order. (b) In the event an applicant fails and refuses to comply with his undertakings, the administering department or agency may take any or all of the following actions: (1) cancel, terminate, or suspend in whole or in part the agreement, contract, or other arrangement with such applicant with respect to which the failure and refusal occurred; (2) refrain from extending any further assistance to the applicant under the program with respect to which the failure or refusal occurred until satisfactory assurance of future compliance has been received from such applicant; and (3) refer the case to the Department of Justice for appropriate legal proceedings. (c) Any action with respect to an applicant pursuant to Subsection (b) shall be taken in conformity with Section 602 of the Civil Rights Act of 1964 (and the regulations of the administering department or agency issued thereunder), to the extent applicable. In no case shall action be taken with respect to an applicant pursuant to Clause (1) or (2) of Subsection (b) without notice and opportunity for hearing before the administering department or agency. SEC. 304. Any executive department or agency which imposes by rule, regulation, or order requirements of non-discrimination in employment, other than requirements imposed pursuant to this Order, may delegate to the Secretary of Labor by agreement such responsibilities with respect to compliance standards, reports, and procedures as would tend to bring the administration of such requirements into conformity with the administration of requirements imposed under this Order: Provided, That actions to effect compliance by recipients of Federal financial assistance with requirements imposed pursuant to Title VI of the Civil Rights Act of 1964 shall be taken in conformity with the procedures and limitations prescribed in Section 602 thereof and the regulations of the administering department or agency issued thereunder. PART IV-MISCELLANEOUS SEC. 401. The Secretary of Labor may delegate to any officer, agency, or employee in the Executive branch of the Government, any function or duty of the Secretary under Parts II and III of this Order, except authority to promulgate rules and regulations of a general nature. SEC. 402. The Secretary of Labor shall provide administrative support for the execution of the program known as the "Plans for Progress." SEC. 403. (a) Executive Orders Nos. 10590 (January 18, 1955), 10722 (August 5, 1957), 10925 (March 6, 1961), 11114 (June 22, 1963), and 11162 (July 28, 1964), are hereby superseded and the President's Committee on Equal Employment Opportunity established by Executive Order No. 10925 is hereby abolished. All records and property in the custody of the Committee shall be transferred to the Civil Service Commission and the Secretary of Labor, as appropriate. (b) Nothing in this Order shall be deemed to relieve any person of any obligation assumed or imposed under or pursuant to any Executive Order superseded by this Order. All rules, regulations, orders, instructions, designations, and other directives issued by the President's Committee on Equal Employment Opportunity and those issued by the heads of various departments or agencies under or pursuant to any of the Executive orders superseded by this Order. shall, to the extent that they are not inconsistent with this Order, remain in full force and effect unless and until revoked or superseded by appropriate authority. References in such directives to provisions of the superseded orders shall be deemed to be references to the comparable provisions of this Order. SEC. 404. The General Services Administration shall take appropriate action to revise the standard Government contract forms to accord with the provisions of this Order and of the rules and regulations of the Secretary of Labor. SEC. 405. This Order shall become effective 30 days after the date of this Order. The White House. LYNDON B. JOHNSON. September 24, 1965. Executive Order 11375 AMENDING EXECUTIVE ORDER No. 11246, RELATING TO EQUAL EMPLOYMENT OPPORTUNITY It is the policy of the United States Government to provide equal opportunity in Federal employment and in employment by Federal contractors on the basis of merit and without discrimination because of race, color, religion, sex or national origin. The Congress, by enacting Title VII of the Civil Rights Act of 1964, enunciated a national policy of equal employment opportunity in private employment, without discrimination because of race, color, religion, sex or national origin. Executive Order No. 11246 of September 24, 1965, carried forward a program of equal employment opportunity in Government employment, employment by Federal contractors and subcontractors and employment under Federally assisted construction contracts regardless of race, creed, color or national origin. It is desirable that the equal employment opportunity programs provided for in Executive Order No. 11246 expressly embrace discrimination on account of sex. Now, Therefore, by virtue of the authority vested in me as President of the United States by the Constitution and statutes of the United States, it is ordered that Executive Order No. 11246 of September 24, 1965, be amended as follows: (1) Section 101 of Part I. concerning nondiscrimination in Government employment, is revised to read as follows: "SECTION 101. It is the policy of the Government of the United States to provide equal opportunity in Federal employment for all qualified persons, to prohibit discrimination in employment because of race, color, religion, sex or national origin, and to promote the full realization of equal employment opportunity through a positive, continuing program in each executive department and agency. The policy of equal opportunity applies to every aspect of Federal employment policy and practice." (2) Section 104 of Part I is revised to read as follows: "SECTION 104. The Civil Service Commission shall provide for the prompt, fair, and impartial consideration of all complaints of discrimination in Federal employment on the basis of race, color, religion, sex or national origin. Procedures for the consideration of complaints shall include at least one impartial review within the executive department or agency and shall provide for appeal to the Civil Service Commission." (3) Paragraphs (1) and (2) of the quoted required contract provisions in section 202 of Part II, concerning nondiscrimination in employment by Government contractors and subcontractors, are revised to read as follows: "(1) The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for trading, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notice to be provided by the contracting officer setting forth the provisions of this nondiscrimination clause. "(2) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin." (4) Section 203 (d) of Part II is revised to read as follows: "(d) The contracting agency or the Secretary of Labor may direct that any bidder or prospective contractor or subcontractor shall submit, as part of his Compliance Report, a statement in writing, signed by an authorized officer or agent on behalf of any labor union or any agency referring workers or providing or supervising apprenticeship or other training, with which the bidder or prospective contractor deals, with supporting information, to the effect that the signer's practices and policies do not discriminate on the grounds of race, color, religion, sex or national origin, and that the signer either will affirmatively cooperate in the implementation of the policy and provisions of this order or that it consents and agrees that recruitment, employment, and the terms and conditions of employment under the proposed contract shall be in accordance with the purposes and provisions of the order. In the event that the union, or the agency shall refuse to execute such a statement, the Compliance Report shall so certify and set forth what efforts have been made to secure such a statement and such additional factual material as the contracting agency or the Secretary of Labor may require." The amendments to Part I shall be effective 30 days after the date of this order. The amendments to Part II shall be effective one year after the date of this order. The White House, LYNDON B. JOHNSON. Mr. HAWKINS. I am pleased to welcome as our lead-off witness in these most important hearings the Secretary of Labor, the Honorable John T. Dunlop. Mr. Secretary, it is a pleasure to welcome you. We do have your prepared statement, which I received this morning. The other members of the subcommittee and I are very pleased to have this opportunity to address ourselves to what I am sure you agree is a most important subject. We look forward to your testimony. STATEMENT OF HON. JOHN T. DUNLOP, SECRETARY OF LABOR, ACCOMPANIED BY BERNARD E. DeLURY, ASSISTANT SECRETARY OF LABOR FOR EMPLOYMENT STANDARDS; FRED CLARK, ASSISTANT SECRETARY OF LABOR FOR ADMINISTRATION AND MANAGEMENT; WILLIAM KILBERG, SOLICITOR OF LABOR; PHILIP DAVIS, DIRECTOR, OFFICE OF FEDERAL CONTRACT COMPLIANCE; AND GEORGE F. TRAVERS, ASSOCIATE DIRECTOR, OFFICE OF FEDERAL CONTRACT COMPLIANCE Secretary DUNLOP. Thank you very kindly, Mr. Chairman. I am pleased to appear this morning to discuss the Department of Labor's contract compliance program and a number of related issues. With me are the Solicitor of Labor, on my immediate right, William J. Kilberg; Assistant Secretary for Employment Standards, Bernard DeLury, on my immediate left; the Director of the Office of Federal Contract Compliance, Philip Davis, to Mr. DeLury's left; and Fred Clark, the Assistant Secretary for Administration and Management, who is at the end of the table on my right. Very few governmental programs are as vital to the future strength of our Nation as the effort to assure equal opportunities for profitable employment to all our citizens. This has been and continues to be one of the Department of Labor's central missions. Job discrimination in its many forms is a tragic and unnecessary waste of our human resources and it is an unfair denial to individuals of the right to achieve their full potential. It is a wrong which this administration seeks to eliminate. 1. DEVELOPMENT OF EEO POLICY A discussion of issues in the equal employment area needs to recognize the historical context in which these issues have emerged. Perhaps more than any other area of major governmental interest, the development of equal employment requirements reflects the varied formulation of policies by the President, by the Congress, and by the courts. Many of the issues we are now confronting have their source in the diverse origins of equal employment requirements. An understanding of these origins is necessary to appreciate the complexities of the issues we face. I cite Sovern, Michael I., "Legal Restraints on Racial Discrimination in Employment," New York: Twentieth Century Fund (1966) for a fuller analysis of historical background. The executive branch initially assumed a leadership role in the establishment of equal employment opportunity as a Federal policy through the issuance of a series of Presidential Executive orders, beginning 34 years ago, which have formed the basis of the contract compliance program. Although these Executive orders are addressed only to Government contractors, many of today's commonly known equal employment concepts have their historical antecedents in the Executive order programs. For example, it was a committee chaired by former Vice President Nixon that first suggested in 1960 that Government contractors be required to take affirmative action in the hiring and upgrading of minorities. In 1961 Executive Order 10925 was issued by President Kennedy incorporating the suggestions of the Nixon committee and providing for specific sanctions for noncompliance. In 1965 the present administrative arrangement was created by Executive Order 11246 issued by President Johnson. That order delegated authority to the Secretary of Labor rather than a Presidential committee to administer the Federal contract compliance program. I might pause to note that I was a member of the Equal Opportunities Commission in 1964 and 1965, before that change was made. In 1967 the Executive order program was expanded to include sex as a prohibited basis of discrimination by Executive Order 11375. Congressional concern with the need for civil rights legislation was clearly expressed with the passage of the Civil Rights Act of 1957. We now have a multiplicity of statutes which deal with different forms of discrimination in employment. These include the Equal Pay Act, passed in 1963; title VII of the Civil Rights Act of 1964; the Age Discrimination in Employment Act of 1967; title IX of the Education Amendments of 1972; the Vocational Rehabilitation Act of 1973; and, most recently, the Vietnam Era Veterans Readjustment Assistance Act, passed in 1974. In addition to these equal employment laws, a variety of nondiscrimination provisions have been included in other statutes, such as title VI of the 1964 Civil Rights Act and section 122 of the General Revenue Sharing Act. Similar provisions have been included in special revenue sharing statutes and other acts such as the Federal Highway Act and various housing statutes. The courts, too, have contributed to the development of EEO law. Through judicial interpretation of the Constitution and of existing statutes, rights not previously thought to exist have been assured. For example, the courts have found the Civil Rights Act of 1866 applicable to discrimination in private employment and have expanded the doctrine of fair representation under the National Labor Relations Act. Moreover, the fifth and 14th amendments to the Constitution have been read to require an affirmative obligation on Government to insure that its moneys and its processes are not used in a discriminatory manner. In addition, the courts have expanded the scope of existing equal employment statutes. It is now clear, for example, that title VII includes a broad affirmative action remedy. 2. ROLE OF DEPARTMENT OF LABOR The Department has had a major role in the implementation of many EEO programs. In addition to our role under the Executive order, the Department also administers and enforces the Equal Pay Act, the Age Discrimination in Employment Act, and the affirmative action requirements for handicapped persons and disabled and Vietnam era veterans under the Vocational Rehabilitation Act and the Vietnam Era Veterans Readjustment Assistance Act. In the 11 years since the enactment of the Equal Pay Act the Department has collected over $100 million in unpaid back wages for violations of the act. The recipients of this money have included blue collar workers as well as management and professional employees. Relief has been provided for women custodial workers in secondary and elementary schools, as well as for nurses' aides, bank tellers, salesclerks, cashiers, and factory workers. As a result of our efforts, women |