On January 21, 2025, President Donald Trump signed an executive order titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” (EO). The goal of this order is to eliminate what it terms “illegal” diversity, equity, and inclusion (DEI) employment policies. For federal contractors, the EO rescinds the requirement to maintain affirmative action plans. For all employers, the EO signals increased investigation and enforcement activities relating to DEI programs that use discriminatory preferences.
Section 3 of the EO, titled “Terminating Illegal Discrimination in the Federal Government,” specifically addresses the federal contracting process and revokes several previous executive orders and memoranda, including Executive Order 11246 (“EO 11246”). Originally established in 1965 by President Lyndon Johnson, EO 11246 prohibited employment discrimination by federal contractors and subcontractors based on race, color, religion, sex, and national origin. EO 11246 also required covered contractors to take affirmative action to ensure equal employment. President Trump’s EO now bars federal contractors from considering race, color, sex, sexual orientation, religion, or national origin in their employment, procurement or contracting practices “in ways that violate the Nation’s civil rights laws.” The EO ultimately eliminates affirmative action plan obligations for federal contractors.
Section 4 of the EO, titled “Encouraging the Private Sector to End Illegal DEI Discrimination and Preferences” directs federal agencies, in coordination with the attorney general, to take necessary actions to implement the EO’s principles. Within 120 days, the attorney general, in consultation with agency heads, is required to submit a report with recommendations for enforcing federal civil rights laws and taking other appropriate measures to encourage the private sector to end illegal discrimination and preferences, including DEI. This report must outline key areas of concern within each agency’s jurisdiction, identify the most egregious DEI practices, propose specific measures to deter illegal discrimination, suggest strategies for private sector engagement, and indicate potential litigation and regulatory actions.
It is crucial to note that President Trump’s EO does not alter existing anti-discrimination laws (like Title VII or the Florida Civil Rights Act) or their judicial interpretations. However, we strongly encourage employers, particularly federal contractors, to evaluate their current DEI initiatives and/or programs to ensure potential compliance with the EO.
We will continue to monitor developments regarding this executive order. If you have any questions or concerns about it or other employment-related executive orders, please feel free to reach out to us.
