Recent actions by the U.S. Department of Justice (DOJ) should serve as a wake-up call for federal contractors and employers nationwide.
In June 2026, the DOJ launched an investigation into alleged race discrimination at the City University of New York (CUNY) involving its Black Male Initiative program. The Department is examining whether educational opportunities and benefits were provided on the basis of race in violation of federal civil rights laws. (Department of Justice)
At approximately the same time, the DOJ concluded that the University of California Davis School of Medicine engaged in race-based discrimination in admissions, alleging that race-neutral factors were used as proxies for race and resulted in unequal treatment of applicants. (Department of Justice)
These actions follow similar DOJ findings involving Yale University, UCLA, and additional investigations into medical schools across the country. (Department of Justice)
While these cases involve educational institutions under Title VI, the enforcement principles are directly relevant to employers under Title VII, federal contractors under Executive Orders 14173 and 14398, and organizations certifying compliance with federal nondiscrimination requirements.
Three Major Lessons for Federal Contractors
Lesson #1: The Government Is Looking Beyond Intent
Historically, many organizations focused on proving good intentions.
Today’s enforcement agencies are increasingly focused on outcomes, decision-making processes, and evidence demonstrating whether individuals received different treatment because of race, sex, ethnicity, or other protected characteristics.
The question is no longer merely:
“Did the organization intend to discriminate?”
The question increasingly becomes:
“Can the organization demonstrate that its decisions were based on legitimate, job-related factors?”
Lesson #2: Race-Neutral Policies May Still Be Examined
Recent DOJ findings suggest that investigators are willing to scrutinize whether facially neutral practices are being used as proxies for race. (Department of Justice)
Employers should recognize that selection procedures, hiring practices, promotion systems, compensation programs, and succession planning processes may receive similar scrutiny if they produce persistent disparities.
Lesson #3: Certifications Carry Increased Risk
Executive Order 14173 and Executive Order 14398 have elevated the importance of compliance certifications and nondiscrimination obligations throughout the federal contracting community.
Organizations that certify compliance without evaluating whether their employment practices are producing discriminatory outcomes may expose themselves to increased regulatory, contractual, and False Claims Act (FCA) risk.
The government’s message is becoming increasingly clear:
Employers are expected not only to maintain equal employment opportunity policies but also to demonstrate that their employment systems operate fairly and consistently.
At HR Unlimited Inc., we help federal contractors and employers navigate complex compliance requirements while building stronger, more inclusive workplaces. If you’re ready to strengthen your compliance and equity efforts, contact us today to learn how we can support your EEO and non-discrimination goals.