President Trump’s Executive Order Rescinding Executive Order 11246: What Does this Mean for Federal Contractors?

Labor & Employment Law Navigator Blog
Jan 24, 2025

On January 21, 2025, President Donald Trump signed an executive order titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” The executive order dramatically changes diversity, equity and inclusion (DEI) and affirmative action requirements for federal contractors in two primary ways:

  • The order revokes Executive Order 11246, which required federal contractors to engage in affirmative action for women and minorities.
  • The order prohibits the Office of Federal Contract Compliance Programs (“OFCCP”) from promoting diversity, holding federal contractors responsible for taking affirmative action, and encouraging federal contractors to engage in workforce balancing based upon race, color, sex, sexual orientation, religion, or national origin.

Federal contractors who wish to continue their affirmative action efforts based upon race and sex may do so for an additional 90 days. It is likely that open OFCCP audits under Executive Order 11246 will be closed soon.

The order also requires federal contractors to certify that they are not carrying out DEI initiatives that the administration would consider to be illegal. Although the details of the certification process are unknown at this time, it is possible that the process will look similar to the one used in recent years on the OFCCP’s contractor portal. Although we are still waiting for clarity on this process, federal contractors should take the time now to review their current DEI programs and policies, specifically focusing on any public-facing communications.

Although the order removes some onerous requirements for federal contractors, the order does not change the following:

  • Requirements regarding individuals with disabilities or veterans under Section 503 and VEVRAA, as those requirements are based in statute, rather than executive order. An outstanding question is whether the OFCCP will continue to have the funding, power, or employees to enforce those requirements.
  • EEO-1 and VETS-4212 reporting.
  • State and local affirmative action plan requirements.
  • Requirements under federal anti-discrimination laws.

We will continue to monitor the implications of the recent executive order, including anticipated legal challenges and guidance from the OFCCP.