What happened?

On January 21, 2025, President Trump signed the Executive Order (EO) “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” which revokes Executive Order 11246 (Equal Employment Opportunity), which was signed by President Lyndon Johnson in 1965.

Overview:

The Executive Order eliminates the requirement for federal contractors to maintain affirmative action programs and prohibits DEI (Diversity, Equity, and Inclusion) or DEIA (Diversity, Equity, Inclusion, and Accessibility) programs. It also significantly reduces the duties of the OFCCP.

• This marks a shift in federal policy towards merit-based opportunities and enforcing existing civil rights laws.

• Key Provisions of the Executive Order:
  • Revocation of Executive Orders 11246 and 13672: These orders, originally signed by Presidents Lyndon Johnson and Barack Obama, respectively, required federal contractors to take affirmative action to ensure non-discriminatory practices in hiring and employment based on race, color, religion, sex, or national origin.
  • Prohibition of DEI Programs: Federal contractors, subcontractors, and grant recipients are prohibited from maintaining DEI or DEIA programs.
  • Reduction of OFCCP Duties: The OFCCP is now prohibited from enforcing affirmative action, promoting diversity, or allowing federal contractors and subcontractors to balance the workforce based on race, color, sex, sexual preference, religion, or national origin.
  • Focus on Existing Civil Rights Laws: The order emphasizes enforcing existing civil rights laws to prevent discrimination rather than implementing affirmative action programs.
  • Contractual Requirements: Every federal contract or grant award must now include a term certifying that the contractor or award recipient will not operate any programs promoting DEI and a term requiring compliance with all applicable federal anti-discrimination laws.

Additional Details

• Implementation Timeline: Contractors and subcontractors have 90 days to eliminate affirmative action programs that conflict with the order by the due date of April 20, 2025.

• Exemptions: The order does not apply to lawful employment and contracting preferences for veterans or blind people protected by the Randolph-Sheppard Act.

• Implications for Federal Contractors
  • Compliance Adjustments: Companies must review and adjust their affirmative action and DEI programs to comply with the new order, ensuring hiring practices do not consider race, color, sex, sexual preference, religion, or national origin (or eliminate them).
  • Review of Internal Policies: Contractors and grant recipients should review internal policies to identify potential violations, paying special attention to roles like “Diversity Officer.”
  • OFCCP Guidance: Contractors previously identified for annual compliance reviews should seek guidance from the OFCCP to verify if reviews will continue.

• Attorney General’s Report: The executive order directs the Attorney General to prepare a report within 120 days.

Source References

• Executive Order: Ending Illegal Discrimination And Restoring Merit-Based Opportunity

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