On January 21, 2025, President Donald Trump signed a new executive order titled, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” which reverses long-standing affirmative action requirements for federal contractors. This order eliminates the provisions of Executive Order 11246 and grants a 90-day transition period, giving federal contractors until April 21, 2025, to adjust to the new rules.
What Was Executive Order 11246?
Executive Order 11246 previously required certain federal contractors with at least 50 employees and $50,000 in contracts to implement affirmative action plans. These plans were designed to prevent discrimination and promote equal employment opportunities. With the new executive order, these requirements are no longer in effect.
Key Changes Under Trump’s New Executive Order
President Trump’s directive aims to eliminate what it calls “illegal preferences and discrimination” in federal contracting. Here are some major changes:
Limiting the OFCCP’s Authority
The Office of Federal Contract Compliance Programs (OFCCP), which once enforced affirmative action mandates, is now prohibited from promoting diversity or holding contractors accountable for taking affirmative action based on race, color, sex, sexual preference, religion, or national origin. As part of this change, the OFCCP will cease its investigations and close any pending cases or enforcement activities related to affirmative action. However, the OFCCP will still enforce other anti-discrimination laws, including the Civil Rights Act, the Americans with Disabilities Act, and others.
Ending DEI Programs
The new order also requires all federal contractors and grant recipients to certify that they do not run diversity, equity, and inclusion (DEI) programs that violate federal anti-discrimination laws. This applies to all new, renewed, or modified contracts. Although the exact criteria for determining whether DEI programs are compliant remain unclear, contractors should review their initiatives carefully to ensure they are not violating the law. DEI programs that use race or gender quotas or restrict opportunities based on identity could be at risk.
Discouraging DEI Programs in the Private Sector
While the order does not directly affect private businesses not involved in federal contracts, it signals a shift in priorities. The order encourages federal agencies to propose strategies for reducing DEI programs and investigate organizations for potential non-compliance. This may eventually influence corporate DEI policies, although immediate legal consequences are not expected for the private sector.
What Requirements Still Apply for Federal Contractors?
Despite these changes, federal contractors must still comply with certain laws, such as the Rehabilitation Act, which mandates affirmative action for employees with disabilities, and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA), which requires affirmative action for certain veterans. These laws will continue to be enforced by the OFCCP, including requirements for job postings, self-identification, and reporting for disabled employees and veterans.
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