
This article examines the legal issues surrounding religious exemptions in federal contracting legislation. It also discusses Executive Order 11246, Section 702(2) of Title VII of Civil Rights Act of 64. We also discuss the special requirements of religiously exempt products. The final part of the article contains important advice for employers.
Executive Order 11246
The Office of Federal Contract Compliance Programs published a proposal for rulemaking to clarify and expand the exemption from religious persecution. This proposed rule will build on precedent from the Supreme Court and clarify what is a religious organisation. The rule also provides examples and guidelines for applicants. Further, the OFCCP provides FAQs on 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. They are allowed to set employment conditions that reflect religious principles and avoid violating any workplace laws. However, this exemption does not apply to organizations that discriminate on the basis of race, national origin, or gender.

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. Because the statutory language would allow religious organizations to carry out activities that are not for profit, it would be easier. 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). SS702(a), allows government activities to promote religion, but it must not hinder it. The court cited relevant cases.
Federal contracting law exemptions for religious reasons
Federal contracting laws provide protection against discrimination for religious organizations. Businesses are also protected by these laws. Members of religious organizations may be hired to work for them and can also conduct religious activities. This could allow them to be eligible for federal contracts. There are however some important limitations for religious organisations. First, they must follow the law.
Recently, regulations were proposed to clarify the definition of religious exemption by the Office of Federal Contract Compliance Programs of the Department of Labor. The rules will encourage more religious organizations participation in federal contracts and provide them with appropriate protections. The rules are set to become effective on January 8, 2021.

Impact on 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. Employers may be suspicious if she can't prove her sincerity.
Some employees may use religious phrases to greet co-workers or display religious symbols at their workplace. These employees might feel they have an obligation to speak out or promote their beliefs. In these cases, employees must inform their employers of such behavior and explain why they believe in their religion.