“Ending Illegal Discrimination and Restoring Merit-Based Opportunity” (Order) is one of President Trump’s most recent executive orders. The Order was signed on January 21, 2025. The Order revoked Executive Order EO11246 (EO11246), along with several other previously enacted executive orders aimed at promoting diversity, equity and inclusion (DEI) in the workplace. EO11246 has been in effect since 1965. The White House stated in a fact sheet that the Order will streamline the federal contracting process to “enhance speed and efficiency, reduce costs, and require Federal contractors and subcontractors to comply with [] civil rights laws.”

The Office of Federal Contract Compliance Programs (OFCCP), an office under the Department of Labor, was charged with enforcing EO11246. Under EO11246, federal contractors were prohibited from discriminating against any applicant or employee based on race, religion, color, sex, sexual orientation, gender identity or national origin. EO11246 also required federal contractors to implement affirmative action to ensure that applicants and employees were treated without regard to their race, religion, color, sex, sexual orientation, gender identity or national origin.

Federal contractors may continue to comply with EO11246 for 90 days from the date of the Order. However, the OFCCP has been directed to immediately cease the promotion of workplace diversity, holding federal contractors and subcontractors responsible for taking “affirmative action” and allowing or encouraging federal contractors or subcontractors to engage in any balancing of the workplace based on protected characteristics such as race, religion, or sex.

Moving forward, federal contractors must certify that they do not have any DEI programs in place that violate anti-discrimination laws to continue contracting with the federal government. Federal contractors must also remove any references to DEI from their government agency contracts.

While the Order does not apply to private employers who do not contract with the government, the Order makes clear that the private sector is encouraged to “end illegal DEI discrimination and preferences.” To achieve this objective, the Order requires the Attorney General and the heads of all agencies to take “all appropriate action” to advance the policy of “individual initiative, excellence and hard work” in the private sector.

Specifically, within 120 days of the Order going into effect, the Attorney General and heads of agencies are to coordinate with the Office of Management and Budget to submit a report to the president on what actions should be taken to encourage the private sector to end “illegal discrimination and preferences, including DEI.” The report must have a strategic enforcement plan that identifies key sectors of concern, the most egregious and discriminatory DEI practitioners within each sector of concern, and the identification of entities for potential civil compliance investigations.

Reach out to the authors of this post to learn more about this Order and its implications for your business.

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Richard Arnholt Richard Arnholt

Richard Arnholt advises companies, large and small, on the complex rules and regulations applicable to grants and contracts from federal and state governmental entities. In an era of increased budgetary pressures for contractors, Richard focuses his practice on providing practical business and legal…

Richard Arnholt advises companies, large and small, on the complex rules and regulations applicable to grants and contracts from federal and state governmental entities. In an era of increased budgetary pressures for contractors, Richard focuses his practice on providing practical business and legal guidance to help clients efficiently navigate the minefield of government procurement and grant regulations.

Photo of Robert Horton Robert Horton

As chair of the firm’s Labor & Employment Practice Group, Bob Horton represents management in all areas of labor and employment law. Bob’s practice consists primarily of counseling clients regarding employment issues and defending companies against all manner of employment claims throughout the…

As chair of the firm’s Labor & Employment Practice Group, Bob Horton represents management in all areas of labor and employment law. Bob’s practice consists primarily of counseling clients regarding employment issues and defending companies against all manner of employment claims throughout the U.S.

Photo of Todd Overman Todd Overman

Todd Overman is the chair of the firm’s Government Contracts practice and Managing Partner of the Washington, D.C. office.  He has over twenty years of experience advising companies on the unique aspects of doing business with the federal government. Over the last decade…

Todd Overman is the chair of the firm’s Government Contracts practice and Managing Partner of the Washington, D.C. office.  He has over twenty years of experience advising companies on the unique aspects of doing business with the federal government. Over the last decade, he has advised on more than 50 transactions involving the purchase or sale of a government contractor.

Alex Redmond

Alex Redmond represents clients in all facets of employment and labor matters, including litigation involving discrimination, harassment, wage and hour issues, and proceedings before state and federal courts and administrative agencies. In addition to her litigation practice, she advises employers on all aspects…

Alex Redmond represents clients in all facets of employment and labor matters, including litigation involving discrimination, harassment, wage and hour issues, and proceedings before state and federal courts and administrative agencies. In addition to her litigation practice, she advises employers on all aspects of employment law, including complex issues related to contract disputes, discharge, discipline, and discrimination, as well as best practices with regard to employee leave and accommodation matters under the Americans with Disabilities Act (ADA), the Family and Medical Leave Act (FMLA), and other statutes. Alex also works closely with companies to design and draft employee handbooks and implement new policies related to the workforce.