On January 21, 2025, President Trump issued a new executive order titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” bringing significant changes to the affirmative action obligations of federal contractors and subcontractors. This directive shifts the focus from traditional affirmative action mandates to emphasizing anti-discrimination and merit-based practices. Its objective is to uphold federal civil rights laws through anti-discrimination enforcement.
1. The order rescinds Executive Order 11246, replacing affirmative action requirements for federal contractors for anti-discrimination and merit-based practices.
2. Federal contractors and subcontractors may continue complying with EO-11246 obligations in effect as of January 20, 2025, for a 90-day transition period.
3. Over the next 120 days, the administration will:
-Study enforcement of federal civil rights laws and prohibitions against illegal DEI practices.
-Target up to nine employers for potential civil compliance investigations.
-Issue joint guidance from the Attorney General and Secretary of Education on compliance measures following the Students for Fair Admissions, Inc. v. President and Fellows of Harvard College decision.
4. Prepare for Certification: Contractors receiving federal funds may need to certify that their programs comply with the updated interpretation of federal civil rights laws.
5. Section 503, VEVRAA and other state requirements remain legislative and are still in effect. Employers are still required to comply with EEO-1 and VETS-4212 reporting.
We are closely monitoring these developments and the OutSolve team is prepared to:
-Help employers make the transition from affirmative action requirements to the new anti-discrimination framework.
-Help to ensure your compliance programs align with obligations as they stood on January 20, 2025.
-Offer resources to ensure your organization remains compliant and aligned with the executive order.
If you have any questions or need assistance in understanding how these changes impact your compliance requirements, please don’t hesitate to contact OutSolve at info@outsolve.com.