Compliance Stuff

On March 26, 2026, President Donald Trump signed an executive order (EO) titled “ Addressing DEI Discrimination by Federal Contractors ” that, for the first time, attaches direct contractual consequences to diversity, equity, and inclusion (DEI) practices in federal contracting. 00:00 10:59 Quick Hits On March 26, 2026, President Trump issued an executive order (EO) with broad applicability to federal contractors and subcontractors, but certain agreements would not likely be covered by the EO, including Other Transaction Agreements (OTAs), cooperative agreements, and grants. The EO defines “racially discriminatory DEI activities” as disparate treatment based on race or ethnicity across hiring , promotions, vendor agreements, training, and program participation—a notable departure from earlier EOs that used the phrase “unlawful DEI” without defining it. Enforcement authority appears to rest with individual contracting agencies, which may terminate or suspend contracts and initiate deba...

  On March 28, 2025, the Fifth Circuit Court of Appeals vacated its previous ruling that permitted a $15 per hour minimum wage for federal contractors, shortly after President Donald Trump revoked the Biden administration rule setting that wage rate. Quick Hits The Fifth Circuit vacated its decision to uphold a $15 per hour minimum wage for federal contractors. The court acted shortly after President Trump rescinded a Biden administration rule raising the minimum wage for federal contractors to $15 per hour. An Obama-era rule establishing a $13.30 per hour minimum wage for federal contractors still stands. On the website for the U.S. Department of Labor, the agency  said  it is “no longer enforcing” the final rule that raised the minimum wage for federal contractors to $15 per hour with an annual increase depending on inflation. As of January 1, 2025, the minimum wage for federal contractors was $17.75 per hour, but that rate is no longer in effect. Therefore, an Obama-e...