What the Repeal of Executive Order 11246 Means for the Hire Industry
On January 21, 2025, President Trump issued a new executive order titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” officially revoking Executive Order 11246. This landmark decision significantly alters the landscape of employment practices for federal contractors and subcontractors by effectively ending affirmative action in employment. Here’s what the repeal means for the hire industry and what stakeholders should be aware of moving forward.
Key changes introduced by the new order
The new executive order outlines several major changes:
- Affirmative action termination: affirmative action requirements for federal contractors and subcontractors will cease. However, the regulatory scheme in effect as of January 20, 2025, will remain enforceable for an additional 90 days, giving employers a brief transitional period to adjust.
- Focus on non-discrimination practices: the new policy emphasizes non-discrimination in employment and curbing diversity, equity, and inclusion (DEI) practices.
- Streamlining federal contracting: the White House Fact Sheet accompanying the order outlines priorities such as increasing efficiency in the federal contracting process and barring the Office of Federal Contract Compliance Programs (OFCCP) from encouraging workforce balancing efforts by contractors.
- 120-day review period: over the next 120 days, the administration will study federal civil rights enforcement and the legality of existing DEI practices. Recommendations will follow this review period.
- Civil compliance investigations: federal agencies must identify up to nine employers within this timeframe for potential civil compliance investigations.
- Educational guidance: The Attorney General and the Secretary of Education will issue guidance within 120 days for state and local educational agencies and institutions of higher education receiving federal funds. This guidance will align with the Supreme Court’s decision in Students for Fair Admissions, Inc. v. President and Fellows of Harvard College, emphasizing compliance measures.
What stays the same?
It is critical to note that while affirmative action requirements have been repealed, certain legislative obligations remain intact:
- Section 503 of the Rehabilitation Act and VEVRAA Requirements: these laws remain unchanged, requiring affirmative action for individuals with disabilities and protected veterans.
- EEO-1, VETS-4212, and state reporting obligations: employers must still comply with these reporting requirements.
- Mandatory job listing requirements: no changes have been made to this obligation.
Implications for the Hire Industry
The repeal of Executive Order 11246 and the shift to merit-based hiring will significantly impact the hiring practices of federal contractors and subcontractors. Employers should be prepared for uncertainty as federal agencies conduct their 120-day review and issue updated guidance. Here are the key things you should keep in mind:
- Short-term stability: the regulatory framework in place as of January 20, 2025, remains enforceable for the next 90 days.
- OFCCP and Affirmative Action Requirements under review: employers should expect potential changes to OFCCP policies and affirmative action requirements in the coming months.
- Veritone updates: Veritone will continue to monitor developments and provide updates throughout the review process.
Next steps for employers
As the administration evaluates these policies, federal contractors and subcontractors should:
- Review current practices: ensure compliance with existing regulations, including EEO-1 and VETS-4212 filings.
- Monitor updates: stay informed about federal contracting requirements and DEI practice changes.
- Seek guidance: consult with legal or compliance experts to navigate the transition effectively.
Repealing Executive Order 11246 represents a monumental shift in federal employment policy. The new order aims to streamline processes and redefine workplace equity standards by focusing on merit-based hiring while maintaining certain compliance obligations. Employers in the hire industry must remain proactive and adaptive to these changes to ensure compliance and operational success.
If you have any questions, feel free to contact our compliance expert, Gary Cowan, at [email protected].