A newly issued Executive Order, “Addressing DEI Discrimination by Federal Contractors,” marks a decisive shift in how the federal government evaluates workplace practices. For federal contractors, this is not a policy nuance, it is a structural change. Practices that rely on race- or ethnicity-based preferences, even when framed as diversity initiatives, may now expose organizations to contractual penalties and…
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Even if OFCCP remains quieter than in past years, federal contractors should not interpret that as a compliance “pause.” In 2026, the smartest strategy is quiet preparation. Contractors should assume: compliance obligations still exist enforcement can resume quickly data and transparency will drive scrutiny complaints and whistleblowers will trigger investigations The Liability Federal Contractors Can…
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For much of 2025 and early 2026, federal contractors have watched the Office of Federal Contract Compliance Programs (OFCCP) become unusually quiet. Compliance reviews stopped. Enforcement activity nearly disappeared. The contractor portal was shut down, and the agency’s future was publicly questioned. That is why the most recent appropriations news is significant: OFCCP has now…
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Executive Summary Between anti-DEI messaging from federal leadership and continued Title VII enforcement actions penalizing race and sex discrimination, private employers and federal contractors face a complicated compliance environment heading into 2026. While rhetoric suggests heightened scrutiny of “illegal DEI,” the legal reality is that Title VII has not changed: employment decisions may not be…
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In light of DOJ’s stated priorities, federal contractors and private employers (100 or more employees) should take proactive steps to mitigate FCA exposure tied to discrimination risks. Conduct a Privileged Internal Review Review hiring, promotion, compensation, mentorship, and training programs under attorney-client privilege to assess whether any practices could be interpreted as steering decisions based…
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