On Tuesday, January 21, 2025, President Donald Trump issued an order revoking Executive Order 11246 which prohibits discrimination by federal contractors and subcontractors on the basis of race, color, religion, sex, sexual orientation, gender identity or national origin. Executive Order 11246 also required government contractors and subcontractors with 50 or more employees and an annual contract of at least $50,000 to develop and maintain a written affirmative action plan. The new order titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” allows contractors to continue their programs for an additional 90 days from January 20, 2025.

The Order requires the Office of Management and Budget (OMB) to streamline the federal contracting process and bars the Office of Federal Contract Compliance Programs (OFCCP) from pushing contractors to balance their workforce based on race, sex, gender, gender identity, sexual preference or religion. It further directs all departments and agencies to take “strong action to end private sector DEI discrimination, including civil compliance investigations.”

Importantly, the new order does not address Section 503 of the Rehabilitation Act which addresses non-discrimination and affirmative action for individuals with disabilities or the Vietnam Era Veterans’ Reemployment Adjustment Act (VEVRAA) which addresses non-discrimination and affirmative action for certain specified categories of veterans. Those requirements still appear to be in effect.

We will continue to keep you posted as developments occur. In the meantime, if you have any questions, please contact Jennifer Craighead Carey, Amy Shirk or any member of the Barley Snyder Employment Practice Group for assistance.