Search results for: revoke

President Trump has revoked President Biden’s EO that increased the minimum wage for federal contractor employees. This action is part of a broader effort by Trump to reverse several of Biden’s executive orders, marking a significant shift in federal policy. (Refer to EO “Additional Rescissions of Harmful Executive Orders and Actions.”) Read more.

In response to President Trump revoking Executive Order 11246, Acting U.S. Department of Labor (DOL) Secretary Vincent Micone issued an Order on January 24th, instructing DOL employees including OFCCP to stop all enforcement activity under the rescinded Executive Order 11246. Specifically, the order instructs OFCCP to

Cease and desist all investigative and enforcement activity under the rescinded Executive Order 11246 and the regulations promulgated under it. This includes all pending cases, conciliation agreements, investigations, complaints, and any other enforcement-related or investigative activity.

Notify all regulated parties with impacted open reviews or investigations by January 31, 2025, that the EO 11246 component of the review or investigation has been closed and the Section 503 and VEVRAA components of the review or investigation are being held in abeyance pending further guidance.

As indicated in the Order, by January 31st federal contractors with open audits or investigations pursuant to EO 11246 should receive communication from OFCCP that their reviews are closed. 

Additionally, given Section 503 (Individuals with a Disability) and VEVRAA (Protected Veterans) reviews are on hold until OFCCP and contractors receive further guidance, contractors presumably are under no obligation to submit VEVERAA and Section 503 related materials to OFCCP in connection with any open reviews.

We will continue to monitor developments. Please reach out to your Jackson Lewis attorney if you have questions about federal contractor compliance during this transition period.

Bloomberg Law reported late Tuesday night that President Donald Trump has revoked Executive Order 11246 as part of a broader executive order addressing diversity, equity and inclusion programs in the federal government and for private employers generally.

This is a breaking news story. We will follow up as soon as the White House publishes the text of the executive order.

In one of numerous Executive Orders signed on January 20, 2025, President Trump issued an order entitled, “Initial Rescissions of Harmful Executive Orders and Actions.” The Executive Order revokes a long list of Executive Orders and actions by his predecessor, President Joe Biden.

As expected, many Biden Executive Orders revoked by President Trump were those in furtherance of diversity and inclusion efforts but included others, including those on pay transparency and COVID-19 protections that had not yet been rescinded by President Biden. Some highlights of the rescinded Executive Orders include:

Today’s Executive Order makes clear

[t]he revocations within this order will be the first of many steps the United States Federal Government will take to repair our institutions and our economy.

As such, today’s Executive Order is the first in what we expect will be a wave of executive actions issued by President Trump early in the new administration. We will monitor these developments and continue to provide updates and insights on the implications for federal contractors.

Please reach out to your Jackson Lewis attorney if you have questions during this transition period.

In an Executive Order issued yesterday, President Trump revoked Obama-Era Executive Order 13495, which provided some protection – a right of first refusal for continued employment – to qualified service workers when a government contract was replaced with a new contract and successor contractor at the same location.  President Trump’s Executive Order provides no explanation for the revocation, but the move was likely influenced by the new Secretary of Labor, Eugene Scalia.

Executive Order (EO) 13495 and its implementing regulations, applied to any contract or subcontract for services entered into by the Federal Government or its contractors covered by the McNamara-O’Hara Service Contract Act.  It required that qualified workers (non-exempt workers covered by the SCA’s requirements) on a covered contract who stood to lose their jobs due to the completion or expiration of a contract be given a right of first refusal for employment with the successor contractor.  Generally, the successor contractor was prohibited from hiring any new employees under the successor contract until qualified workers performing the prior contact were provided the opportunity to accept a job with the successor.  However, EO 13495 applied only to successor contracts for the performance of the same or similar services at the same location.

The revoked Order required the predecessor contractor to provide written notice to eligible employees either via a conspicuous workplace posting or via notices delivered to the employees individually. Federal contractors are no longer required to post or provide any EO 13495 notices. Please note this revocation does not affect contractor obligations with respect compliance with Executive Order 13496.

President Trump’s Order requires the Labor Secretary and others to “promptly move to rescind any orders, rules, regulations, guidelines, programs, or policies implementing or enforcing Executive Order 13495.”  Significantly, the Order terminates immediately any existing investigations or compliance actions based on EO 13495.

You may recall the President has revoked other Executive Orders entered by President Obama, including the “Blacklisting” Order. and there may be more to come.

As anticipated, President Trump has put an end to Executive Order 13673 – Fair Pay & Safe Workplaces, also known as the “blacklisting” executive order.  As expected, the President signed legislation disapproving of the Executive Order pursuant to the Congressional Review Act.  He also issued an Executive Order officially revoking the initial authorizing Executive Order signed by President Obama. President Trump’s Order directs the Department of Labor and other executive agencies to “consider promptly rescinding any orders, rules, regulations, guidance, guidelines, or policies implementing or enforcing the revoked Executive Orders.”

With the underlying authorization for the regulations eliminated, this spells the end for the Executive Order as well as the DOL Guidance and the FAR provisions implementing the Blacklisting Rule.  The end result – federal contractors will not be required to report alleged labor violations to federal agencies as part of the bid process, are not required to implement procedures to comply with required paycheck transparency, and will not be prohibited from entering into mandatory arbitration agreements concerning employee Title VII claims.

 

Nineteen states and the District of Columbia have filed a lawsuit challenging the federal government’s rollout of Executive Order (EO) 14398, “Addressing DEI Discrimination by Federal Contractors.” The coalition of plaintiff states challenges the EO and federal agency actions taken to implement what they allege are unclear requirements across new and existing contracts. Filed on June 10, 2026, the complaint names the United States, the Federal Acquisition Regulatory Council (FAR Council), and numerous federal agencies and agency officials as defendants.

EO 14398, issued March 26, 2026, directs agencies to add a new clause to federal contracts and “contract-like instruments,” including subcontracts. The clause prohibits contractors from engaging in “racially discriminatory DEI activities,” defined as disparate treatment based on race or ethnicity in recruitment, employment, contracting, program participation, or allocation or deployment of an entity’s resources. It also requires contractors to include flow-down clauses in subcontracts, report known or reasonably knowable subcontractor conduct that may violate the clause, and acknowledge compliance as material to payment decisions for purposes of the False Claims Act.

The plaintiffs allege that the contract term is unclear and does not provide sufficient explanation of what it prohibits. The definition of “racially discriminatory DEI activities” echoes existing prohibitions but neither the EO nor implementing actions explain how the new term differs from existing law, EO 11246 (in effect for 60 years), or EO 14173 (issued in January 2025). They allege the lack of clarity also extends to contractors’ obligation to report subcontractor conduct that “may” violate the clause. The states also challenge the agencies’ treatment of prior federal contractor rules, alleging the agencies did not adequately address the shift from requirements that had applied under the now-rescinded EO 11246.

The lawsuit also raises procedural and statutory challenges under the Administrative Procedure Act and federal procurement laws, alleging the FAR Council imposed contract terms with significant external effects without following required notice-and-comment procedures. In support, the complaint points to an April 17, 2026, implementation memorandum in which the FAR Council directed agencies to use the clause in new contracts beginning April 24, 2026, update class deviations concerning the implementation of the clause by April 27, 2026, and make every effort to add the clause to existing contracts by July 24, 2026.

The states claim the new terms adversely impact them because they regularly perform federal contracts and subcontracts through state agencies and instrumentalities, including universities, with collective contracts worth billions of dollars annually. In their view, the unclear terms impose significant compliance challenges, costs, and burdens.

The case, which was filed in the U.S. District Court for the District of Maryland, remains pending. It is also not the only pending litigation involving EO 14398. In the higher education context, plaintiffs including the National Association of Diversity Officers in Higher Education filed a separate lawsuit in April 2026 challenging the EO on constitutional and ultra vires grounds.

If you have questions about recent federal contractor developments and requirements, contact an attorney at Jackson Lewis P.C.

In conjunction with the recent proposed rule changes to the Section 503 of the Rehabilitation Act of 1973 (Section 503) and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA) regulations, the Department of Labor (DOL) announced OFCCP has the authority to resume its enforcement activities related to veterans and individuals with disabilities.

On July 2, 2025, Secretary of Labor Lori Chavez-DeRemer issued Secretary’s Order 08-2025, officially lifting the prior temporary pause on enforcement put in place in January 2025 by the then Acting Secretary of Labor. Prompted almost immediately by EO 14173, the prior order, Order 03-2025, directed OFCCP to halt all activities under EO 11246. Order 03-2025 also placed OFCCP’s activities related to Section 503 and VEVRAA in abeyance. The DOL asserted this temporary pause was necessary to unwind EO 11246 programs and separate them from OFCCP’s Section 503 and VEVRAA compliance structure, ensuring that the “OFCCP did not undertake any activity for which it was not authorized.” 

With the abeyance lifted, DOL announced OFCCP can resume work on VEVRRA and Section 503 complaints immediately.

However, with respect to compliance reviews, the notice explained

OFCCP will be exercising its discretion to administratively close all pending compliance reviews and will take no further action related to the scheduling list released in November 2024.  Impacted contractors will promptly receive formal notification of the administrative closure of the pending compliance review. 

Additionally, the notices confirm the Section 503 and VEVRAA affirmative action program (AAP) certification process remains closed at this time and reiterates the Veterans Affairs Health Benefits Program (VAHBP) enforcement moratorium has been extended through May 7, 2027. Despite this, Secretary Chavez-DeRemer’s order reminds contractors that they must continue to meet their obligations under Section 503 and VEVRAA regulations.

Importantly, Secretary’s Order 08-2025 does not rescind the prior DOL order in its entirety. Secretary’s Order 03-2025 provisions related to EO 11246 remain in effect. As outlined in the earlier order, OFCCP must “cease and desist” the Agency’s investigative and enforcement activities under the EO 11246.

If you have questions about OFCCP’s resumed activities and how they could affect your organization, contact a Jackson Lewis attorney to discuss your specific situation and compliance obligations.

OFCCP has published proposed modifications to the VEVRAA and Section 503 regulations which govern federal contractor affirmative action obligations for veterans and individuals with disabilities.

The proposed changes to the veterans’ regulations are largely procedural – removing references to Executive Order 11246 and its implementing regulations – resulting in the veterans’ regulations being wholly self-contained and not reliant on incorporation of the inoperable 11246 regulations. As a note, the Agency has also simultaneously proposed to formally rescind the Executive Order 11246 regulations in an effort to address any confusion as to their status following President Trump’s revocation of Executive Order 11246 in January 2025.

Conversely, while including the same Executive Order 11246 modifications, OFCCP proposes additional modifications to the Section 503 regulations which are more material – proposing to eliminate self-identification data collection and utilization analyses for individuals with disabilities. The proposal does not suggest removing contractors’ obligations to assess the effectiveness of their outreach efforts, however.

To be clear, the obligation to prepare affirmative action plans under both VEVRAA and Section 503 remain intact under OFCCP’s proposals.

The proposed rules are now open for a 60-day public comment period.

We continue to digest the changes and will be back with more insights as they develop.

In a move the Agency reported is designed to maintain healthcare access for active and retired service members and their families, the Office of Federal Contract Compliance Programs (OFCCP) has announced a two-year extension to the enforcement moratorium for Veterans Affairs Health Benefits Program (VAHBP) providers. This extension, effective June 11, 2025, will now run through May 7, 2027.

The extended moratorium continues to suspend the enforcement of VAHBP providers’ requirement to take affirmative steps to ensure equal opportunity without regard to disability or protected veteran status, obligations typically required of federal contractors and subcontractors. Additionally, VAHBP providers will not be subject to neutral scheduling for compliance evaluations during this period – though all evaluations are currently being held in abeyance.

Presently, the OFCCP retains authority to investigate discrimination complaints filed under Section 503 of the Rehabilitation Act (Section 503) and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA). However, given the current administration’s focus on deregulation and the recent proposed budget that would effectively eliminate the OFCCP, this moratorium extension likely reflects the need to address the previous May 2025 expiration date, rather than an indication that the agency is ramping up its activities.

This extension represents the latest in a series of actions dating back to 2014, when the OFCCP first limited its enforcement activities for TRICARE subcontractors in an effort to balance regulatory requirements and veterans’ access to healthcare, allowing for more time to consider stakeholder feedback. The moratorium was later expanded to include VAHBP providers. Effective August 31 2020, OFCCP’s final rule established that it does not have authority over TRICARE providers. The current moratorium extension provides additional time for the OFCCP to develop sub-regulatory guidance specifically addressing VAHBP providers.

While the extension offers some regulatory relief, VAHBP providers must remain aware that the moratorium does not exempt them from nondiscrimination obligations.

We will continue to monitor OFCCP developments and administrative activities for updates. If you have questions about this extension and how it may affect your organization, please contact a Jackson Lewis attorney for guidance.