AFFIRMATIVE ACTION AND FEDERAL CONTRACT COMPLIANCE
KEY AFFIRMATIVE ACTION AND DEI STANDARDS DISMANTLED Many federal contractors and subcontractors have long been required to create affirmative action plans and have also promoted DEI practices. In January, President Trump quickly delivered on his promise to unravel affirmative action programs and curb DEI practices. Read more here about this major shift and how it may impact your operations.
FEDS HALT ALL AFFIRMATIVE ACTION ENFORCEMENT ACTIVITY OFCCP employees were ordered to cease any and all investigative and enforcement activity regarding race and gender affirmative action obligations that applied to federal contractors since the 1960s. Read more here about this development. OFCCP DIRECTOR INTENDS TO REVIEW PRIOR AFFIRMATIVE ACTION PLANS The new OFCCP leader, Catherine Eschbach, wants to review mandatory affirmative action plans submitted prior to the new administration for potential longstanding discriminatory practices. Read more here about what federal contractors can expect.
Predictions for Next 100 Days... and Beyond
• We expect more changes as OFCCP moves forward with plans to reduce its workforce by up to 90% while significantly narrowing its affirmative action focus to veteran and disability discrimination. • EEOC and other agencies will issue related guidance. The OFCCP may refer discrimination matters to the EEOC and/or the Department of Justice, which have also shined a spotlight on DEI programs. • More courts will weigh in. Already, a federal judge in Maryland temporarily blocked parts of Trump’s DEI order. Although an appeals court lifted the ban in March — allowing the administration to proceed while the lawsuit plays out — other courts are reviewing the executive order and reaching different conclusions. You’ll want to stay tuned as this issue unfolds and may ultimately reach the Supreme Court.
NO MORE $17.75 FEDERAL CONTRACTOR MINIMUM WAGE The president rescinded an executive order in March that mandated a higher minimum wage for workers on federal contracts. However, federal contractors still have wage obligations under federal, state, and local laws. Read more about this development here.
ADDITIONAL CHANGES IMPACT FEDERAL CONTRACTORS President Trump also rescinded executive orders that favored unions by prioritizing project labor agreements and incentivized participation in registered apprenticeship programs. However, any statutory requirement under laws such as the Inflation Reduction Act to employ apprentices are not affected.
Sheila M. Abron Partner and Co-Chair, Affirmative Action and Federal Contract Compliance Practice Group Columbia sabron@fisherphillips.com
Jennifer B. Sandberg Regional Managing Partner Fort Lauderdale / Atlanta jsandberg@fisherphillips.com
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