There is a lot of confusion about what the recent Executive Order revoking Executive Order 11246 means. Some coverage even makes it seem that revoking Executive Order 11246 makes it legal for federal contractors to discriminate against their employees. This is not true.
Executive Order 11246 covers discrimination in federal government employment and most famously has heightened requirements beyond general employment discrimination laws for government contractors regarding employment discrimination, reporting requirements, and the potential penalty of being ineligible for gaining/renewing contracts if the contractor engages in discrimination. The implemented regulations are in 41 CFR 60.
The basic policy idea behind Executive Order 11246 is that when the federal government decides to award contracts, it wants extra assurance that the contractors are not engaging in something the federal government condemns: employment discrimination.
You might disagree with this goal; the ways Executive Order 11246 tries to accomplish this; and/or if it is successful at achieving its ends. That is a separate discussion from the ways revoking the Order changes the law.
Most importantly: Employment discrimination is still against the law whether or not Executive Order 11246 is in place or not. Rescinding Executive Order 11246 in no way makes it legal for covered employers including federal contractors and/or the federal government, to engage in employment discrimination. (some exceptions below).
Now to those exceptions (you are probably noticing that lawyers are always full of exceptions): There are likely some federal contractor employees who lose protection due to the revocation of Executive Order 11246. Under 41 CFR 60-1.5 the Executive Order 11246 applies to all contracts of more than 10k (with some exceptions). Most of our federal employment discrimination laws apply to employers with 15 or more employees. One exception is the 1866 Civil Rights Act, which prohibits race discrimination and has no employer size threshold. Some states/localities cover employers with fewer employees. So yes, if you work for an employer with under 15 employees, that has a contract of more than 10k with the federal government (or in some cases a contract of any amount), and there is no other employment discrimination law that covers you, you have potentially lost your protections against employment discrimination. This exception will impact some people but is a far cry from the claims that the new Executive Order makes employment discrimination legal.
In short: Employment discrimination is still against the law. Employees: Know your rights. Employers: know your obligations.