Affirmative action refers to employers who are subject to Federal Executive Order 11246, i.e., the employer does business with the federal government. This involves policies that are used to increase opportunities for minorities by favoring them in hiring and promotion, college admissions, and the awarding of government contracts. Depending upon the circumstances, "minorities" can include any underrepresented group, such as those defined by race, ethnicity, or gender.

Employers subject to affirmative action are required by law to have a written affirmative action plan. The plan includes a workforce analysis to determine the utilization of employees in a protected status. These plans are subject to audits from the Office of Federal Contract Compliance Programs (OFCCP), an agency of the Department of Labor, to make sure the plan is properly drafted and in use. In addition, affirmative action employers are required to establish goals and timetables for improving opportunities for minorities. This includes programs to provide opportunities for minorities to be hired or promoted.

While often confused, affirmative action is not synonymous with Equal Employment Opportunity (EEO). EEO means that employers do not discriminate against employees or job applicants because of protected status. This is usually established through written policies and procedures to guide managers and supervisors to be certain that no discrimination takes place. Affirmative action, on the other hand, proactively mandates the integration and inclusion of individuals of protected status.

The term "affirmative action" was first used by President Kennedy in a 1961 executive order designed to encourage contractors with federally funded projects to racially integrate their workforces. Specifically, the executive order stated that federal contractors should "take affirmative action to ensure that applicants are employed, and employees are treated during their employment, without regard to race, creed, color or national origin." This was significant because it went beyond simply stopping discrimination; proactive measures to increase equality were being discussed.

Generally, affirmative action has been utilized by governments, businesses, and educational institutions to remedy the effects of past discrimination against a group. Up until the mid-1960s, legal and societal barriers prevented racial minorities from being hired for various jobs or being accepted into many educational institutions. While not legally discouraged, many women were also excluded from jobs or educational opportunities.

Because of these barriers, the Civil Rights Act of 1964 was created. This law prohibited discrimination in public accommodations and employment. A section of the Civil Rights Act known as Title VII specifically banned discrimination based on race, color, religion, sex, and national origin. This act laid the groundwork for the development of affirmative action. In addition, the Equal Employment Opportunity Commission (EEOC), which was created by the Civil Rights Act, and the Office of Federal Contract Compliance became important enforcement agencies for affirmative action.

Responding to continuing racial inequalities in the workforce, President Nixon was the first president to implement federal policies designed to guarantee minority hiring. Called the Philadelphia Plan, contractors on federally funded projects were now required to set specific goals for hiring minorities. This differed from previous legislation in that employers were not only prohibited from discriminating, but they were required to hire individuals of protected classes.

Since this time, the courts have interpreted and re-interpreted the details of these laws; however, the principle remains the same - organizations receiving funding from the government are expected to fully utilize minorities and women at all levels and in all segments of its workforce where deficiencies exist.