FAR 52.222-26 Equal Opportunity: Postings, Records, and Flow-Down
Federal construction solicitations and contract documents routinely incorporate government-wide workforce standards that primes and trade subcontractors must follow. Under FAR 52.222-26, Equal Opportunity, contractors working on federal projects commit to specific nondiscrimination principles, workplace notices, pay-transparency rules, and records access. For commercial drywall, framing, and interior trades building bids for government work, understanding the reach of this clause prevents unexpected compliance hurdles on the jobsite.
Contract Thresholds and Operational Applicability
The requirements in FAR 52.222-26 are prescribed by FAR 22.810(e). A contractor must comply with the clause if, during any 12-month periodâwhich includes the 12 months preceding the contract awardâthe firm has received or is awarded nonexempt federal contracts or subcontracts with an aggregate value in excess of $10,000. When requested, contractors must provide the contracting agency with the information needed to evaluate whether the clause applies to their operations.
Geographically, the clause covers work performed within the United States. In this context, the United States includes the 50 States, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, Guam, the U.S. Virgin Islands, and Wake Island. Work performed outside these jurisdictions by workers who were not recruited within the United States is exempt from these requirements.
The clause also identifies narrow exemptions and allowances. Religious corporations, associations, educational institutions, and societies are exempt from the clause regarding the employment of individuals of a particular religion to conduct the entity's activities under 41 CFR 60-1.5. Additionally, contractors do not violate the clause by offering a publicly announced employment preference to Indians living on or near an Indian reservation for opportunities connected with that reservation, as permitted by 41 CFR 60-1.5.
Nondiscrimination and Affirmative Action Coverage
The primary core of the clause prohibits discrimination against any employee or applicant based on race, color, religion, sex, sexual orientation, gender identity, or national origin. Beyond avoiding discrimination, contractors must take affirmative action to ensure applicants are considered and employees are treated throughout employment without regard to these protected characteristics. The affirmative action obligation applies across several personnel actions:
- Employment, upgrading, demotion, and transfer
- Recruitment and recruitment advertising
- Layoff or termination decisions
- Rates of pay and other forms of compensation
- Selection for training, including apprenticeship
When placing solicitations or advertisements for job openings, contractors must state clearly that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, or national origin.
Jobsite Postings and Union Notifications
Physical and electronic communication on the jobsite is a central compliance requirement under the clause. Contractors must display notices explaining the clause in conspicuous locations accessible to both current employees and prospective applicants. The specific notices to display are provided by the Contracting Officer.
Trade contractors that operate under union agreements must also address organized labor channels directly. The contractor must send a notice provided by the Contracting Officer to each labor union or worker representative with which it holds a collective bargaining agreement, contract, or mutual understanding. This notice informs the union or worker representative of the contractor commitments under the clause. Furthermore, copies of that union notice must be posted in conspicuous locations where applicants and craft workers can easily read them.
Pay Transparency and Compensation Discussions
The Equal Opportunity clause includes detailed provisions protecting compensation transparency. Contractors may not discharge, discipline, or discriminate against applicants or employees who inquire about, discuss, or disclose their own compensation or the compensation of other workers. However, this protection does not extend to employees whose essential job functions grant them access to confidential payroll and pay records if they disclose that data to unauthorized individuals, unless the disclosure answers a formal charge, investigation, proceeding, or legal requirement.
To ensure worker awareness, contractors must disseminate this pay nondiscrimination policy using language prescribed by the Director of the Office of Federal Contract Compliance Programs (OFCCP). Contractors must implement this requirement by:
- Incorporating the prescribed text directly into existing employee manuals or worker handbooks
- Distributing the text through electronic postings or by placing physical notices in conspicuous locations available to applicants and employees
Records Access, Government Audits, and Subcontract Flow-Down
Under FAR 52.222-26, compliance connects directly to Executive Order 11246, as amended, and regulations issued by the Secretary of Labor. Contractors must furnish all information required by the executive order and Department of Labor rules. Contractors must also submit standard EEO- 1 reporting forms as outlined in 41 CFR Part 60-1. Unless a contractor has submitted these filings within the 12 months preceding contract award, the firm must apply to the regional OFCCP or local Equal Employment Opportunity Commission office for the appropriate forms within 30 days after award.
Federal agencies and the OFCCP maintain inspection authority. During normal business hours, contractors must permit government representatives to enter premises for on-site compliance evaluations and complaint investigations. The government has the right to inspect and copy books, accounts, and records, including computerized data, relevant to compliance under Executive Order 11246.
Finally, contractors must flow down the full text of FAR 52.222-26 into every lower-tier purchase order and subcontract that is not exempt under Department of Labor regulations, ensuring these rules bind every vendor and subcontractor on the project. Contractors must enforce these terms as directed by the OFCCP Director. If a subcontractor dispute or litigation threat arises from this enforcement, the contractor may ask the United States to intervene to protect federal interests. For related construction trade obligations, see our guides on FAR 52.222-11 Labor Standards Flow-Down and FAR 52.222-27 Construction Affirmative Action.
Sources
Contract specifications and regulatory text referenced in this guide:
Published November 9, 2026. No affiliate links on this page. Facts come from the sources linked above; check them for updates.