L&E Legal Alert – Affirmative Action Rule Revoked for Federal Contractors
President Trump revoked a longstanding rule that mandated federal contractors to implement affirmative action to guarantee equal opportunity in hiring and employment practices.
On January 21, 2025, President Donald Trump signed order Ending Illegal Discrimination and Restoring Merit-Based Opportunity (the Order). The Order revokes Executive Order 11246 (“EO 11246”), as amended, issued by President Lyndon B. Johnson on September 24, 1965. This move has sparked significant discussion regarding the future of equal employment opportunity measures for federal contractors and the broader landscape of workplace diversity.
Understanding Executive Order 11246
EO11246 was a landmark directive aimed at ensuring that federal contractors and subcontractors uphold principles of nondiscrimination in employment practices. Specifically, it prohibited discrimination based on race, color, religion, sex, or national origin. Additionally, the Order required federal contractors to take affirmative action to ensure equal opportunity in hiring and employment practices.
For decades, EO 11246 has served as a cornerstone of efforts to increase diversity and promote workplace equality for those working in the federal sector and for companies doing business with the government.
Additionally, the Order encourages the private sector to discontinue Diversity, Equity, and Inclusion, (DEI) programs and preferences. It directs the heads of all agencies, with the support of the Attorney General, to take necessary actions within their agencies to promote the policy set forth in the private sector.
The Revocation: What It Means
President Trump’s Order is expected to have several implications:
- Potential Erosion of Protections for Minority Workers: may reduce the emphasis on affirmative action in hiring, potentially impacting employment opportunities for women and minorities, especially in sectors reliant on federal contracts.
- Impact on Federal Contractors: With EO 11246 rescinded, businesses that contract with the federal government will no longer be required to adhere to its specific affirmative action provisions. This could lead to a shift in how these businesses approach diversity programs, recruitment, and training, possibly reducing the resources they allocate to these initiatives.
- Shift in Federal Workplace Culture: Federal agencies and contractors may find their diversity-related programs, including reporting and compliance obligations, significantly altered. This could change the way they track and report on diversity metrics.
- Legal and Regulatory Uncertainty: The revocation introduces a level of uncertainty for contractors and businesses that may have built their compliance systems around EO 11246. In the absence of this mandate, many may need to reassess their diversity strategies, potentially leading to legal challenges or further executive orders that could either reinstate or modify previous requirements.
What Happens Next?
As businesses and federal agencies work to navigate this significant shift, we expect ongoing discussions regarding the future of workplace diversity, inclusion, and equal opportunity.
For employers, especially those engaged in federal contracting, it is important to stay updated on further regulatory guidance and potential legal challenges. In addition, it will be crucial to assess how this change in federal policy may impact their own workplace practices and diversity initiatives.
We will continue to monitor developments and provide updates as more information becomes available. Please also feel free to contact us at labor@estrellallc.com.