what you need to know
Executive Order 11246: Affirmative Action Changes
Adapting to Recent Changes in Federal Contractor Obligations
EO 11246 Rescinded: what's next after affirmation action?
On January 21, 2025, President Trump issued a new executive order titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” This executive order introduces significant changes to affirmative action obligations for federal contractors and subcontractors by shifting requirements to anti-discrimination aligned with the federal Civil Rights Act.
- Federal contractor obligations are shifting with the rescinding of EO 11246 and replacing affirmative action requirements with anti-discrimination.
- A 90-day transition period is in effect until April 21, 2025, allowing contractors to continue to comply with their affirmative action plans and adjust their compliance strategies to align with federal civil rights laws.
- Section 503 and VEVRAA requirements remain in effect.
- Federal contractors and grant recipients must certify that they do not operate any programs promoting DEI that violate current anti-discrimination laws – more to come.
- Guidance will be issued over the next 120 days on the new administration's interpretation of these orders and what will be required of federal contractors.
OutSolve is continuing to monitor all of the latest developments for you. Please subscribe to the OutSolve blog to stay updated on news and best practices during this transition period.
What Can My Organization Do During This Transition
Affirmative action requirements for federal contractors will be transitioning to anti-discrimination and merit-based practices. To prepare for this transition, your organization can:
- Prepare for Certification: If you are a contractor and receive federal funds, you may need to certify that your programs comply with the new interpretation of anti-discrimination and merit-based practices. Consider what documentation you have that can support your compliance of this guidance.
- Comply with Section 503 & VEVRAA: These two requirements remain in effect. Please continue all compliance efforts of documentation and reporting related to both.
- Reach Out for Support: The OutSolve team is closely monitoring all developments and is prepared to help employers transition to anti-discrimination efforts. Contact us today for information on this rescission affects you and how OutSolve can help.
What’s Happening with the Rescission of EO 11246
Jeremy Mancheski, OutSolve Founder and CEO, and Vickie LeNormand, Senior Vice President of Operations, sat down on January 28, 2025, to talk through all the changes that have occurred in the federal contracting community since the Inauguration on January 20, 2025.
In this episode of IN & OutSolve, you will gain insight from two industry experts on:
- The history of Executive Order 11246 and the impact of it being rescinded.
- Key distinctions between DEI, affirmative action requirements, and non-discrimination in employment practices.
- Implications of rescinding EO 11246 for the OFCCP, including the closure of all ongoing audits.
- Overview of remaining laws in effect, including Section 503 of the Rehabilitation Act, VEVRAA, and Title VII.
- Practical guidance for federal contractors on the steps they should take right now to ensure compliance.
Resources
Webinar: What's the Difference? DEI, Affirmative Action, and Non-Discrimination in Employment
Feb 4, 2025 by Mary Madden
Frequently Asked Questions
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What is EO 11246?
Executive Order 11246, issued in 1965, prohibited federal contractors from discriminating based on race, color, religion, sex, or national origin. It also required them to create affirmative action plans (AAPs) if they have 50+ employees and $50,000+ in contracts. -
How does the recission affect federal contractors?
The rescission of EO 11246 removes affirmative action requirements for federal contractors, halts workforce balancing efforts, and stops the OFCCP from enforcing these provisions. However, the OFCCP retains authority to enforce protections for veterans and individuals with disabilities. Federal contractors must still comply with Title VII and other anti-discrimination laws. -
Are federal contractors required to comply with the new EO immediately?
The changes take effect on April 21, 2025, giving contractors a 90-day window to end EO 11246 compliance and certify they do not operate DEI programs violating federal anti-discrimination laws. More information to come. -
What specific steps should federal contractors take in response to this change?
To ensure compliance, contractors should:
- Review DEI initiatives for elements that may violate the directive.
- Update policies to align with anti-discrimination laws, focusing on merit-based practices.
- Remove DEI references from communications, handbooks, and training materials.
- Reassess DEI roles, shifting focus to broader compliance objectives.
- Provide training to HR, legal teams, and management on the new requirements.
Upcoming Webinar
DEI, Affirmative Action, and Non-Discrimination are all very similar terms with key differences. Join OutSolve Founder and CEO, Jeremy Mancheski, on Tuesday, February 25, 2025, at 2PM Eastern as he discusses what the differences are between these three terms, their history, and what they mean under the new administration.
What's the difference?
DEI, Affirmative Action, and Non-Discrimination in Employment
February 25, 2025 | 2:00 PM ET
Here for you
The team at OutSolve is here to help make sure your organization remains compliant with all federal civil rights laws and regulations. We are your trusted partner in compliance and are here to help you navigate this transition period by offering our expertise and guidance.
If you are interested in learning more about how OutSolve can help your organization, contact us to schedule a call with a member of our sales team today.