Compliance Stuff

The FAR Council recently issued  much-anticipated guidance  implementing Executive Order (EO) 14398, “Addressing DEI Discrimination by Federal Contractors.” 00:00 11:12 Quick Hits New clause FAR 52.222-90 declares contractor compliance “material” to the government’s payment decisions, creating direct False Claims Act liability for contractors who maintain prohibited programs. Agencies must bilaterally modify existing contracts to include the new clause by July 24, 2026 , and if a contractor refuses, agencies are told to consider whether the contract should be terminated for convenience. Prime contractors must flow the clause down to all tiers and report any subcontractor’s “known or reasonably knowable” violations to the contracting officer. While  EO 14398 , issued in March 2026, set the policy stage, this  new memorandum  provides the technical architecture and aggressive deadlines that federal contractors and subcontractors must navigate immediately. Below, w...

Although there is no common definition of workplace diversity, equity, and inclusion (“DEI”), these programs can generally be characterized as falling into two groups—those that are inclusive and those that are exclusive in that they confer benefits on individuals based on their membership in a particular protected category . Examples of the latter include scholarships, mentorship, and other similar programs that are available only to members of a certain protected class.   In a profound shift, both types of DEI programs in the United States are being challenged. Employers find themselves at a crossroads: how to continue advancing principles of diversity and inclusion while navigating the heightened legal risk and compliance challenges arising out of this new legal environment.   Legal Standard Federal employment discrimination law rests on a principle of individual equality. Title VII of the Civil Rights Act of 1964 prohibits employers from making employment decisions “becaus...