On January 21, 2025, President Trump signed an executive order titled Ending Illegal Discrimination and Restoring Merit-Based Opportunity. This order revokes, among others, Executive Order 11246.
Executive Order 11246 regulated nondiscrimination in employment by government contractors and subcontractors. It stated that the contractor will not discriminate against any employee or applicant because of race, color, religion, sex, sexual orientation, gender identity, or national origin. It also created an obligation to create a written Affirmative Action Plan (“AAP”) comparing the utilization of women and minorities to their availability; setting placement goals if women or minorities are underutilized; assessing recruitment and outreach efforts; and developing and executing action-oriented programs to address identified problems.
Do federal contractors still have to create AAPs?
Though Executive Order 11246 has been revoked, there are still parts of AAPs that are statutorily mandated and must continue to be documented and tracked. Specifically, Section 503 of the Rehabilitation Act, 29 U.S.C. 793 (“Section 503”) and the Vietnam Era Veterans’ Readjustment Assistance Act (“VEVRAA”) mandate that federal contractors take affirmative action to employ individuals with disabilities and veterans.
Section 503 prohibits federal contractors and subcontractors from discriminating against individuals with disabilities in all aspects of employment. It also requires companies with federal contract in excess of $10,000 to take affirmative action to employ and advance in employment qualified individuals with disabilities.
VEVRAA prohibits discrimination against qualified special disabled veterans, as well as other categories of veterans. This applies to any contractors that have a contract with the federal government in the amount of $100,000 or more. It also states that each contractor will have to provide the number of employees who are veterans by job category and hiring location, the number of new veterans hired, and the maximum and minimum number of employees the contractor had during this time.
What does this mean for federal contractors once subject to Executive Order 11246?
AAPs still need to be created and updated in compliance with Section 503 and VEVRAA. So, while no information regarding sex and race will need to be analyzed and compiled, information regarding employment of individuals with disabilities and veterans still needs to be tracked, maintained, and analyzed based on hiring locations.
Though this executive order has changed how federal contractors should draft and maintain their AAPs, there are still other laws and executive orders that these companies must adhere to in order to remain compliant as federal contractors. For example, the minimum wage for federal contractors is currently $17.75 per hour. Federal contractors must also provide their workers with up to seven (7) days of paid sick leave annually. Under this new executive order, employers must also certify that they have no Diversity, Equity, and Inclusion trainings or initiatives. Federal contractors should closely review their agreements with the federal government to make sure that they are complaint.
What will Gravel & Shea be asking for regarding data collection for AAPs?
As we move forward with yearly AAPs, we will be asking for the following information:
- An organizational chart of the company, including the number of employees in each department.
- A spreadsheet of every employee as of the AAP start date, including job title, internal department, salary, internal salary-code, job location, disability status and veteran status.
- A list of new hires, promotions, and terminations between the AAP start date and AAP end date.
- For new hires, please include job title, internal department, salary, internal salary-code, job location, disability status and veteran status.
- For promotions, please include the employee’s old job title and new job title, as well as job location, internal department, disability status and veteran status.
- For terminations, please indicate whether the termination was voluntary or involuntary, as well as their job title, internal department, job location, disability status and veteran status.
- A list of all job applicants between the AAPs start and end dates with job title, internal department, veteran and disability status.
- Finally, a description of any other significant changes in the company (restructuring of responsibilities, a new location, a closed location, etc.).
As more information regarding the state of AAPs continues to be released, we will update this request list and provide additional information as it becomes available to us. We are also able to review and advise on current or prospective federal contracts to ensure compliance.
Please contact Heather Hammond (hhammond@gravelshea.com) at Gravel & Shea PC if you have questions or would like assistance.
