In our previous blog, we highlighted the sweeping move that redefined the federal contractor compliance landscape. President Donald Trump issued Executive Order 14173 on January 21, 2025, titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” This new executive order revokes Executive Order 11246, the long-standing requirement for federal contractors to implement affirmative action programs and avoid discrimination based on race, color, religion, sex, sexual orientation, gender identity, or national origin.
Earlier this month, Secretary of Labor Lori Chavez DeRemer issued Order 08-2025, lifting the abeyance allowing OFCCP to resume activity under the Section 503 and VEVRAA program areas. Here are the key takeaways from this new order.
Key takeaways for hiring and compliance professionals
With this new order, the following is now in effect:
- Federal contractors are no longer obligated to develop or maintain affirmative action plans (AAPs) based on the now-rescinded EO 11246.
- OFCCP is no longer enforcing E.O. 11246, and any compliance activity under it has been halted.
- Section 503 (disability) and VEVRAA (veterans) compliance requirements are still in force and have resumed after a temporary pause.
- Compliance reviews scheduled under EO 11246 have been administratively closed, including those tied to OFCCP’s November 2024 scheduling list.
What should contractors do now?
With these changes, here’s what you should do:
- Cease compliance efforts under EO 11246 unless mandated at the state or local level.
- Resume or maintain compliance with Section 503 and VEVRAA—these programs remain legally binding.
- Prepare for renewed enforcement. While the AAP certification portal remains closed, complaints and investigations under Section 503 and VEVRAA are being processed.
Final Thoughts
The repeal of Executive Order 11246 marks a significant shift away from federal affirmative action enforcement, particularly for organizations that work with the federal government. But while one chapter closes, others remain active. Federal contractors should prioritize compliance with disability and veteran-related obligations and remain vigilant for further guidance as the OFCCP restructures its mission and authority.
If you have any questions, feel free to contact our compliance expert, Gary Cowan, at [email protected].
