By Sarah Mitchell Montgomery

On January 21, 2025, President Trump issued an executive order titled, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” (the “Order”). Among other things, the Order rescinds Executive Order (“E.O.”) 11246, which was issued by President Johnson in 1965. E.O. 11246 has formed the basis for the authority of the Office of Federal Contract Compliance Programs (“OFCCP”) to compel companies doing business with the federal government to comply with certain equal opportunity and affirmative action requirements. These requirements include complying with anti-discrimination laws that prohibit discrimination based on race, color, religion, sex, sexual orientation, gender identity, or national origin, and developing and implementing affirmative action programs aimed at addressing the underrepresentation of women and minorities in the workforce.

Over the years, the OFCCP has exercised its authority under E.O. 11246 by conducting audits of federal contractors and subcontractors to ensure compliance with these equal employment and affirmative action requirements. An audit by the OFCCP has historically involved the agency reviewing a company’s affirmative action program documentation and compliance efforts, analyzing a company’s hiring and compensation data, and looking for areas of potential discrimination in hiring and promotion.

With the issuance of the Order, the OFCCP is required to immediately cease: “(A) [p]romoting ‘diversity’; (B)...

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