This Order introduces significant changes for federal contractors and subcontractors and impacts those working on contracts where the project is wholly or partly funded by the federal government.
Overview of Executive Order 14173
Federal contractors, subcontractors and grantees have until April 21, 2025, to comply with President Trump’s Executive Order (“EO”) 14173 entitled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” This Order introduces significant changes for federal contractors and subcontractors and impacts those working on contracts where the project is wholly or partly funded by the federal government. The EO eliminates long-standing affirmative action requirements and restricts diversity, equity, and inclusion (“DEI”) programs, asserting DEI programs may constitute illegal discrimination. Federal contractors, subcontractors and grantees must reassess their compliance and hiring practices to align with the new regulatory framework, while maintaining compliance with other federal, state and local laws and regulations.
Key Changes for Federal Contractors, Subcontractors and Grantees
1. Elimination of Affirmative Action Requirements
Since 1965, federal contractors, subcontractors and recipients of federal grants have been required to implement affirmative action programs pursuant to EO 11246. President Trump’s Order revokes that EO, eliminating mandates for workforce composition analysis and hiring preferences based on protected characteristics such as race, national origin, sex, age, disability, and gender, among others. Federal contractors, subcontractors and grantees are now prohibited from implementing hiring or promotion policies that could be interpreted as favoring certain groups over others.
Reprinted courtesy of Stephen E. Irving, Peckar & Abramson, P.C. and Tara R. Munder, Peckar & Abramson, P.C.
Mr. Irving may be contacted at sirving@pecklaw.com
Ms. Munder may be contacted at tmunder@pecklaw.com