Quick Hit: The U.S. Department of Labor’s Office of Federal Contract Compliance Programs (“OFCCP”) has issued a final rule significantly revising the regulations implementing Section 503 of the Rehabilitation Act of 1973. Although the rule is scheduled for publication in
Government Contractor Compliance & Regulatory Update
The Government Contractor Compliance & Regulatory Update blog, published by Proskauer Rose LLP, focuses on legal developments affecting federal contractors and subcontractors. It covers regulatory changes, compliance requirements, and enforcement actions related to government contracts, including labor and employment issues, affirmative action obligations under laws like Section 503 and VEVRAA, and implications of government shutdowns. The blog also addresses emerging topics such as the impact of executive orders on diversity, equity, and inclusion (DEI) initiatives, the use of artificial intelligence in the workplace, and federal investigations into civil rights compliance. It provides guidance on navigating complex federal regulations and managing risks associated with government contracting.
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Latest from Government Contractor Compliance & Regulatory Update
Florida’s New DEI Ban for Local Governments: What Contractors and Vendors Need to Know
Quick Hit: Florida has enacted a sweeping new law (CS/CS/SB 1134) that prohibits counties and municipalities from funding, promoting, or taking any official action relating to diversity, equity, and inclusion (“DEI”), including indirectly through contractors, vendors, and grant…
Federal Government Intervenes in Case Seeking To Invalidate Colorado AI Law
Quick Hit: On April 24, 2026, the Department of Justice intervened in a lawsuit filed by xAI, a company owned by Elon Musk, challenging the Colorado Artificial Intelligence Act (the “AI Act”). If successful, the effort could prevent or delay the implementation of…
Trump Order Prohibiting Contractors’ “Racially Discriminatory DEI Activities” Challenged in Federal Lawsuit
Quick Hit: A complaint has been filed in the U.S. District Court for the District of Maryland, contending that President Trump’s recent Executive Order (the “Order”) barring contractors from engaging in “racially discriminatory DEI activities” violates First Amendment free speech…
FAR Council’s PRA Request for New Contractor Anti-DEI Requirement Raises Speculation About Annual Information Collection
Quick Hit: On April 17, 2026, the Federal Acquisition Regulatory Council (the “FAR Council”) submitted a justification pursuant to the Paperwork Reduction Act (“PRA”), seeking emergency clearance from the Office of Management and Budget (“OMB”) to permit collection of information…
FAR Council Begins Rapid Implementation of New Contractor DEI Restrictions to New and Existing Contracts
Quick Hit: On April 17, 2026, the Federal Acquisition Regulatory Council (the “FAR Council”) commenced implementation of Executive Order 14398 (“the Order”). In its memorandum issued to government acquisition and procurement officials, the FAR Council provides guidance regarding the implementation…
DOJ Resolves First DEI-Related False Claims Act Matter with IBM for $17 Million
Quick Hit: On April 10, 2026, the Department of Justice (“DOJ”) announced the first False Claims Act (“FCA”) resolution secured under its Civil Rights Fraud Initiative. The settlement resolves allegations that International Business Machines Corporation (“IBM”) violated the FCA…
Proposal Will Require Federal Grant Recipients to Certify DEI Compliance Requirements to Register with System for Award Management
Quick Hit: A proposed change to the certification required for registration with the System for Award Management (“SAM”), if adopted, will expand the certifications required for entities applying for or receiving grants, cooperative agreements, or financial assistance such as loans,…
New Executive Order Targets “Racially Discriminatory DEI Activities” by Federal Contractors and Subcontractors
Quick Hit: On March 26, 2026, President Trump signed an Executive Order titled “Addressing DEI Discrimination by Federal Contractors” (the “Order”) which mandates the inclusion of a new clause (the “Clause”) in all covered federal contracts and contract-like…
OFCCP Reorganizes Remaining Staff Following Dramatic Downsizing
OFCCP is undergoing yet another significant organizational shift, as the agency’s director recently announced a restructuring plan for its remaining workforce. This development signals the latest chapter in the OFCCP’s transformation under the Trump Administration.
According to reports, OFCCP…