On January 21, 2025, President Trump issued a sweeping executive order, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” (the EO), rescinding prior executive actions dating back to 1965 relating to equal employment opportunity and affirmative action based on race and sex in federal employment and government contracting activities.

The EO directs the Office of Federal Contract Compliance Programs (OFCCP) to cease promoting diversity, holding federal contractors responsible for taking “affirmative action,” and allowing or encouraging contractors to engage in workforce balancing based on race, color, sex, sexual preference, religion, or national origin. It also instructs agency heads to take various actions and make recommendations focused on eliminating illegal discrimination and preferences in employment, including diversity, equity, and inclusion (DEI) programs, and reiterates that private employers, including government contractors, are prohibited from having “illegal” DEI programs or otherwise engaging in discrimination.

This Advisory discusses the EO and its implications, including compliance challenges government contractors will face. In sum, while the EO eliminates affirmative action based on race and sex and other compliance requirements for government contractors, it does not change existing prohibitions on discrimination in employment, including Title VII of the Civil Rights Act of 1964 (Title VII), and sends a clear message that unlawful...

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