In January 2025, President Donald Trump issued two executive orders that significantly reshape workplace compliance across both public and private sectors: Executive Order 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” and Executive Order 14168, “Defending Women From Gender Ideology Extremism and Restoring Biological Truth to the Federal Government.”
Together, these orders mark a significant shift in labor law compliance for employers nationwide, particularly concerning obligations regarding labor law postings, workforce policies, and compliance certifications.
What Federal Contractors Should Know About EO 14173
Executive Order 14173 revokes Executive Order 11246, which had been in place since President Lyndon Johnson issued it in 1965. It required several things of federal contractors and subcontractors:
- Refraining from discriminating in hiring based on race, color, religion, sex, sexual orientation, gender identity, and national origin
- Taking affirmative action to promote equal employment opportunities
- Maintaining detailed records demonstrating compliance with affirmative action requirements
- Displaying notices informing employees of their rights under the executive order, including that
“the contractor will not discriminate against any employee or applicant for employment because of race, creed, color, or national origin” and “will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, creed, color, or national origin”
President Trump’s new executive order immediately impacts federal contractors by eliminating these requirements. Here is the impact of the new executive order:
- It revokes EO 11246 entirely: Contractors are no longer required to take affirmative action concerning race, sex, or other protected characteristics.
- It ends the requirement for federal contractors to post EO 11246 labor law notices. Previously, contractors had to display these notices to inform employees of their rights and employer obligations under the order.
With the revocation of EO 11246, contractors are no longer required to display notices informing employees about affirmative action obligations and nondiscrimination policies related to race, sex, or other protected characteristics. They have 90 days (until April 21, 2025) to adhere to existing regulations before transitioning away from OFCCP compliance programs and adjusting workplace policies. However, federal contractors must still meet posting requirements under the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) and Section 503 of the Rehabilitation Act, which enforce affirmative action for veterans and individuals with disabilities.
Keep in mind that some states may implement their own affirmative action mandates, requiring separate labor law postings beyond federal requirements.
What Employers Should Know About EO 14168
New Executive Order 14168 significantly alters the legal landscape regarding workplace policies related to gender identity. EO 14168 mandates that federal agencies enforce “the freedom to express the binary nature of sex and the right to single-sex spaces in the workplace” while eliminating references to gender identity in official government policies, forms, and communications.
The Acting Chair of the Equal Employment Opportunity Commission (EEOC), Andrea Lucas, has already taken several steps to align EEOC policies with the new directive, including reviewing and revising the “Know Your Rights” poster that all covered employers must display. No new poster has been announced as of the date of this publication. The agency has also removed gender identity-related materials from the EEOC’s internal and external websites and eliminated the “X” and “Mx.” gender markers from EEOC charge forms and intake processes.
EO 14168 also directs agencies to identify and investigate organizations, including corporations and nonprofits, that continue to promote DEI-related policies that the administration considers to violate federal anti-discrimination laws.
What Steps Should Federal Contractors and Employers Take?
- Remove EO 11246-specific postings.
- Monitor regulatory changes at the federal and state levels to ensure compliance with applicable laws and regulations. Check for state-level affirmative action obligations that require new labor law posters.
- Review workplace policies regarding diversity, equity, and inclusion initiatives; hiring practices; and nondiscrimination compliance.
- Evaluate training programs to align with new federal requirements while maintaining inclusive workplace environments in compliance with state and local laws.
- Consult legal counsel to assess risk exposure concerning gender identity policies and affirmative action requirements in certain states.
All employers should stay informed about future policy developments and watch for potential legal challenges to President Trump’s executive orders. Stay tuned to our blog for the latest developments and labor law poster updates, including the announcement of a new version of the “Know Your Rights” EEOC labor law poster.
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