In January 2025, a new executive order was issued directing federal agencies to discontinue diversity, equity, and inclusion (DEI) programs, initiatives, and positions. The order applies to all federal agencies and contractors, requiring compliance within 60 days. Additionally, it rescinds Executive Order 11246, which previously required affirmative action programs for federal contractors. These changes impact businesses that work with the United States federal government, particularly those with affirmative action requirements. Below is a breakdown of the key DEI policies updates and what employers need to know about these legal updates.
Key Changes to DEI Policies in the Workplace
1. Federal Agencies Must End DEI Initiatives
- All federal agencies are required to discontinue DEI programs and eliminate DEI-related positions within 60 days.
- Some agencies have already started removing references to DEI initiatives from policies and websites.
2. Rescinding of Executive Order 11246
- Executive Order 11246, which mandated affirmative action programs for federal contractors, has been revoked.
- Federal contractors may need to review and adjust affirmative action policies, DEI initiatives, and compliance requirements.
3. Compliance Requirements for Federal Contractors
- Federal contractors should assess how these changes impact existing policies and workplace programs.
- Updates from the Office of Federal Contract Compliance Programs (OFCCP) and the Equal Employment Opportunity Commission (EEOC) may provide further guidance on enforcement and reporting requirements.
4. Legal Challenges and Future Developments
- Some legal challenges have already been filed in response to this executive order.
- Employers may need to monitor future legal decisions that could affect workplace DEI policies and compliance requirements.
What DEI Policies Mean for Employers Today
For Federal Contractors
- Employers doing business with the federal government should assess whether their DEI programs and affirmative action plans need modification.
- Future updates from regulatory agencies may provide additional details on reporting obligations and compliance measures.
For Private Employers
- The executive order does not impose new restrictions on private-sector employers that are not federal contractors.
- Employers outside of federal contracting may want to stay informed about potential legal or regulatory developments.
Next Steps for Employers
- Review existing policies to ensure compliance with the latest executive order.
- Monitor updates from the OFCCP and EEOC for further guidance on enforcement and reporting.
- Stay informed on legal challenges and any potential changes to workplace policies.
The HRDelivered team remains committed to keeping you up to date on the latest employment changes. Please reach out to your HR Consultant with any questions.
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