On August 6, 2025, HR Unlimited Inc. once again brought former leaders from key government agencies to add clarity to what is going on in today’s landscape around EO 14173.
Here are some practical steps your organization can implement to protect itself:
Compliance Priorities
- Take EO 14173 seriously.
- Anti-Discrimination laws are still in effect. Including Title VII, ADA, VEVRAA:
- Continue to file EEO-1s, Vets 4212 and Section 503.
- Perform a Self-Audit of employment practices, policies, programs:
- Involve an attorney to establish and protect attorney-client privilege over the audit’s findings and related communication.
- Identify any disparate treatment or disparate impact:
- Assure that programs, practices and policies have no preferences, exclusions or bars to participation based on any protected class (race, sex, religion, color, national origin, age, disability, veteran/military status, marital/familial status).
- Though keep in mind that the Trump Admin is de-emphasizing disparate impact.
- Assure that hiring is based on merit. Document specific qualifications.
- Self-audits and updating plans and policies can help defeat False Claim Act claims from DOJ.
- Re-brand all DEI programs and Affirmative Action Plans to “Anti-Discrimination Plan or Program”:
- AAPs have not gone away; just re-branded.
- DEI is not inherently discriminatory; assure that yours is compliant.
- An example of “Illegal DEI” would be not correcting disparities against whites or men, but correcting disparities against other groups.
- Follow DOJ’s best practices from “Guidance for recipients of Federal Funding Regarding Unlawful Discrimination”.
- Continue to apply OFCCP’s Uniform Guidelines to selection procedures used as a basis for any employment decision.
- Continue to collect and analyze data for adverse impact analyses (hires, promos, and terms, etc.):
- Continue to collect self-ID data for disability and Veteran status.
- Still need data to verify potential areas of discrimination, and remedy discrimination if it is detected.
- Be prepared to Certify that your Plans, Programs and Policies comply with all anti-discrimination laws:
- A False Claims Act (FCA) claim is based on knowingly submitting a false certification in order to obtain payment.
- Understand False Claims Act (FCA) claims:
- Claims are based on knowing submission of false certification.
- Qui Tam provisions in FCA allow whistleblowers in the organization to report the company to the govt.
- Liability under FCA is severe. Government may attempt to force settlements under threat of a FCA claim.
- Standard is very high. Would have to show reckless disregard of the law.
- Do not sign the certification while you know that you have an illegal DEI program.
Strategic Governance & Board of Directors
Role of Corporate Boards:
- To protect investments, and interest of shareholders and stakeholders by finding talent, increasing profits, reducing risk.
- Nose in and fingers out:
- Ask a lot of questions but allow management to figure it out.
- Trust but verify.
- Establish Committees to keep track of regulations and compliance issues.
Role of Management:
- Find talent, increase profits, reduce risk.
- Keep your Board informed. Boards don’t want to be surprised or embarrassed.
- Activist investors bring un-wanted attention.
- Be aware of a whole new level of activism – federal activism.
- Most board members don’t know ins and outs of compliance – they just want to be in compliance.
- Work effectively with Board Compliance Committees.
State and Local Requirements
What if State and Federal requirements are in conflict?
- Talk to an attorney.
- Look at your contracts – what is required of you?
- Often, a close reading of the laws will reveal no real conflict.
- Do a risk assessment:
- Which is more likely to be enforced?
- Which one takes precedence or is supreme? Federal is supreme over State:
- State procurement laws require AAP for WM – OFCCP director says she wants company to stop federal Affirmative Action, but that doesn’t mean you can’t do state affirmative action! As long as you are not being discriminatory, it should be good.
- If you are signing an agreement with state or locality that you will do AAP, then YOU SHOULD DO IT. Or request a change in the contract and don’t sign it until its updated.
- Typically, you should be able to do both
- Be clear about why you are creating an AAP.
Job Postings and Outreach
- Keep EEO tagline – you are still an equal employment opportunity employer.
- Continue outreach for VET and IWD – even with changes to Section 503.
- Continue outreach for underrepresented groups only if the analytics show that you have under-representation. (Don’t refer to it as affirmative action anymore. You are doing it to combat discrimination).
Proposed Regulations
- Employers should comment on the proposed regulations by 9/2/2025:
- Rescission of EO 11246 Implementing Regulations
- Regulations Implementing VEVRAA
- Modifications to the Regs Implementing Section 503
- Explain why doing workforce analytics can be useful!
- Suggest that admin is wrong in not requiring self-ID for disability and measuring 7% in workforce, as it goes against the legislative act itself and against what businesses want to do.
- Eliminating these items would make it more difficult for businesses to follow the regulations.
- Discuss with legal counsel before making a comment.
Anticipated Regulations
- Trump Admin is focused on “best practices”. Unlikely to issue new regulations because they are focused on de-regulation.
- The Federal Acquisition Regulatory Council (FAR Council) which assists in the direction and coordination of Government-wide procurement policy, may issue guidance for the enforcement of EO 14173.
OTHER Executive Orders to keep your eye on:
- EO 14151 Ending Radical and Wasteful Government DEI Programs
- EO 14168 Defending Women from Gender Ideology Extremism
- EO 14170 Reforming the Fed Hiring Process and Restoring Merit
- EO 14281 Restoring Equality of Opportunity and Meritocracy
Download our EO 14173 Contractor Compliance Checklist
Our EO 14173 Contractor Compliance Checklist provides a comprehensive framework to help you adapt your affirmative action and DEI efforts while staying compliant with evolving federal requirements.
Download our EO 14173 Contractor Compliance Checklist
Have questions about what your organization should do next? Our compliance experts are here to help you adjust, prepare, and protect your organization under EO 14173.