The DOJ Released Guidelines on Non-Discriminatory DEI for Federal Contractors; Have You Audited Your Program Lately?
In July, the DOJ released updated guidance on what might constitute “illegal DEI” by government contractors under an executive order issued in January. As a result, contractors must now move beyond compliance checklists and toward a strategic, principled and legally sound approach to workforce management, says Constangy partner Cara Crotty, who breaks down the latest developments. In January, President Donald Trump signed Executive Order 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” This action rescinded Executive Order 11246, signed in 1965 to provide equal opportunity for women and minorities in hiring by government contractors. The practical implications of this significant shift are just beginning to unfold. Contractors must now recalibrate their compliance practices, understand their remaining legal obligations and prepare for a new era of federal scrutiny, one that targets DEI programs as potential sources of unlawful discriminati...