Great Lakes Wire

On January 21, 2025, President Trump signed an Executive Order titled "Ending Illegal Discrimination and Restoring Merit-Based Opportunity," which revoked Executive Order 11246. This order, originally signed by President Lyndon Johnson in 1965 and amended in 1967, was used by the Office of Federal Contract Compliance Programs (OFCCP) within the U.S. Department of Labor to promote diversity and address discrimination among federal contractors. As a result, all audit activities under EO 11246 were terminated on January 24, 2025, while audits related to veterans and individuals with disabilities were put on hold.

Executive Order 11246 was part of a series of directives aimed at preventing discrimination in employment practices among federal contractors. It built upon earlier orders such as Executive Order 8802 issued in 1941 and Executive Order 10925 issued by President Kennedy in 1961. The latter required government contractors to ensure equal employment opportunities regardless of race, creed, color, or national origin.

The new executive order states: "The Federal contracting process shall be streamlined to enhance speed and efficiency, reduce costs, and require federal contractors and subcontractors to comply with our civil-rights laws." It further specifies that "Executive Order 11246 of September 24, 1965 (Equal Employment Opportunity), is hereby revoked."

Federal contractors will need to certify that they do not maintain any Diversity, Equity, and Inclusion (DEI) programs that violate federal anti-discrimination law. The implementation details remain unclear. Additionally, the order directed agencies to develop plans to deter DEI programs or principles that constitute illegal discrimination or preferences.

Despite these changes, the OFCCP reminded contractors that requirements under Section 503 of the Rehabilitation Act and the Vietnam Era Veterans’ Readjustment Assistance Act are still enforced. These statutory requirements remain unaffected by the new order.

On January 24th, the Acting Secretary of Labor ordered all audits under EO 11246 to cease immediately: “Cease and desist all investigative and enforcement activity under the rescinded Executive Order 11246.”

Federal contractors are advised to continue completing Affirmative Action Plans (AAPs) for veteran and disability audits during this transitional period. While there is a grace period for compliance adjustments following the revocation of EO 11246, organizations should prepare for potential future changes depending on political shifts or state-level actions.

In conclusion, organizations must decide whether to continue creating compliance plans as part of their risk management strategy while being prepared for possible reinstatement or changes at local levels.