
This article discusses the legal issues surrounding Religious Exemptions in Federal Contracting Laws. It also discusses Executive Order 11246 and Section 702(a) of Title VII of the Civil Rights Act of 1964. We also discuss the special requirements of religiously exempt products. And we conclude with some important advice for employers.
Executive Order 11246
To clarify the religious exemption, the Office of Federal Contract Compliance Programs proposed rulemaking. The proposed rule builds on recent Supreme Court precedent and will clarify what constitutes a religious organization. The rule includes guidelines and examples that will help applicants. Further, the OFCCP has published FAQs on the religious exemption.
Executive Order 11246 provides protection for employers who are organized or hold out a religious purpose. It also allows them to exercise their religion in furtherance. The exemption allows them to make employment conditions based on religious tenets, without violating other workplace laws. However, the exemption does not apply for organizations that discriminate based on gender, race, or national origin.

Section 702(a), Title VII of Civil Rights Act of 1964
Justice Brennan concurred that SS 702 can be more easily applied to nonprofits than to for profit entities. This is because the statutory language would more easily accommodate activities of religious organizations that are not for-profit. On the other side, a religious organisation that conducts religious activities for profit might be unable to use the language in SS 702 as it would be unconstitutional.
An activity cannot be considered "prejudiced" by government to qualify for exemption under Section 702(a). SS 702(a) allows for government activity to advance religion, but must not inhibit it. The court cited cases that have addressed this question.
Federal contracting laws may allow religious exemptions
Religious organizations have protection from discrimination under federal contracting law. Businesses are also protected by these laws. Religious organizations can hire members of their faith and conduct religious activities. This could allow them to be eligible for federal contracts. Religious organizations have to be aware of some restrictions. First, they must follow the law.
Recently, the Office of Federal Contract Compliance Programs at the Department of Labor proposed regulations to clarify and add new definitions to the definition of religious exemption. The rules will encourage more religious organizations participation in federal contracts and provide them with appropriate protections. These rules will take effect on January 8, 2021.

The impact on the employee's credibility
Religious exemptions can sometimes have a negative impact upon employee credibility. For example, an employee may not be able to show that her religious practice is in accordance with her employer's values and policies. If this is the case, the employer may question her sincerity.
Employees who use religious phrases or symbols when greeting colleagues at work are another example. Some employees feel they have a moral obligation to share their faith or preach the gospel. In these cases, employees must inform their employers of such behavior and explain why they believe in their religion.