On Monday, President Barack Obama signed an executive order that makes it illegal for the federal contractors and subcontractors to discriminate on the basis of sexual orientation or gender identity. This amends Executive Order 11246, first issued in 1965, which prohibits federal contractors and subcontractors from discriminating against an employee or applicant for employment because of the person's race, color, religion, sex or national origin.

The executive order requires the Department of Labor to issue regulations, which may be published early next year. And those requirements will apply to any contracts signed after the effective date, set by the department.

To read the full text written by Duane Morris partner Jonathan A. Segal, please visit the Entrepreneur website.