A recent federal court ruling has temporarily blocked the enforcement of President Trump’s executive orders targeting Diversity, Equity, Inclusion, and Accessibility (DEIA) programs. Key points from the ruling include:
- Termination Provision: The court found that directing agencies to end “equity-related grants or contracts” likely violates the Spending Clause, as the President cannot unilaterally terminate contracts.
- Certification Provision: Requiring contractors to certify they don’t operate DEI programs was deemed unconstitutional viewpoint discrimination, as it restricts speech on equity and inclusion topics.
- Enforcement Threat Provision: The directive for the Attorney General to deter DEI programs was blocked due to its vague definitions, which could lead to arbitrary enforcement.
This injunction provides temporary relief for federal contractors and private employers, allowing them to maintain DEIA initiatives without fear of losing federal funding or facing enforcement actions.
Background…..
On January 21, 2025, Trump issued an Executive Order (EO) titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” which significantly impacts federal contractors by revoking Executive Order 11246 and eliminating race and sex-based affirmative action plans.
Key Changes & Impacts
Revocation of Executive Order 11246
- The elimination of affirmative action requirements for federal contractors remains in effect.
- The Office of Federal Contract Compliance Programs (OFCCP) has been ordered to halt the enforcement of race and sex-based affirmative action programs.
- Federal contractors must comply with new regulations by April 21, 2025.
Restrictions on OFCCP’s Authority
- The OFCCP can no longer promote diversity initiatives or enforce affirmative action mandates (see above, this has bene halted”. We have to wait and see what happens next).
- Ongoing investigations and enforcement actions related to affirmative action are halted.
Certification Requirements & DEI Limitations
- Federal contractors and grant recipients may need to certify that they do not operate diversity, equity, and inclusion (DEI) programs that violate federal anti-discrimination laws.
Impact on the Private Sector
- While private employers are not directly banned from implementing DEI programs, this EO signals a major federal policy shift that may influence corporate decision-making.
- Employers must balance DEI efforts with compliance under changing federal policies.
Court Injunction on DEI Restrictions
-> A federal court recently halted enforcement of certain provisions in Trump’s EO, providing temporary relief to businesses and contractors. The court ruled that:
-> The order’s termination provision likely violates the Spending Clause, as the President cannot unilaterally terminate contracts.
-> Requiring contractors to certify they don’t operate DEI programs is unconstitutional viewpoint discrimination.
-> The Attorney General’s directive to deter DEI programs is too vague, leading to arbitrary enforcement concerns.
What Federal Contractor Employers Should Do!
- Federal contractors should be prepare for compliance by April 21, 2025.
- Review and potentially modify DEI initiatives to align with evolving federal policies.
- Monitor ongoing legal challenges that may further impact enforcement.
This evolving legal landscape requires proactive planning to ensure compliance while maintaining a strong workplace culture.
