Since taking office, President Trump has issued several executive orders (EOs) affecting federal employees and federal contractors in the employment arena, including changes to affirmative action requirements.
These EOs don’t apply to private employers unless they’re federal contractors or receiving federal funds. Because of their limited applicability, they don’t require private employers to stop diversity, equity, and inclusion (DEI) training or initiatives. While it’s clear that Trump has made DEI a target, we anticipate that attempts to limit private employer programs will be met with immediate litigation.
For federal contractors, the most impactful EO is the one that rescinded Executive Order 11246. This means that federal contractors are no longer required to have affirmative action programs for race, color, religion, sex, sexual orientation, gender identity, or national origin. However, Title VII of the Civil Rights Act is still in full effect and prohibits discrimination based on these classes.
Affirmative action obligations for federal contracts under the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) and the Rehabilitation Act remain in place, so federal contractors must still provide affirmative action programs for protected veterans and individuals with disabilities.
We’re continuing to monitor this ever-evolving area under the new administration and will let you know about changes that directly affect private employers.
The EO rescinding EO 11246 was signed by the President on January 21, 2025.
As always, reach out to the HR experts at KMA for additional guidance.