President Trump recently issued an executive order revoking E.O. 11246, which had required federal contractors to implement affirmative action and non-discriminatory practices for over 60 years. The new order prohibits the Office of Federal Contract Compliance Programs (OFCCP) from enforcing diversity, equity, and inclusion (DEI) initiatives, effectively removing affirmative action requirements tied to federal contracts.
Additionally, federal agencies must now include clauses in grants and contracts requiring compliance with anti-discrimination laws while discouraging DEI programs that could be interpreted as non-compliant. This shift could expose contractors to significant legal risks under the False Claims Act.
Federal contractors are advised to review DEI programs and consult with legal counsel to navigate these changes, especially with the potential for audits and new requirements. Compliance with state and local laws remains critical. For more insights, visit Husch Blackwell’s full analysis.