RGCI - How the New EO 14173 Impacts DEI and Affirmative Action Requirements

President Trump took aim at more than just DEI programs in Executive Order 14173 signed on January 21, 2025, "Ending Illegal Discrimination and Restoring Merit-Based Opportunity," in which he ordered the revocation of several executive actions, including EO 11246.

Impact on OFCCP and Affirmative Action

This EO also included a direct order to the Office of Federal Contractor Compliance Programs (OFCCP) to immediately cease promoting diversity, holding Federal contracts and subcontractors responsible for taking “affirmative action” and allowing or encouraging contractors to engage in workforce balancing based on race, color, sex, sexual preference, religion, or national origin.

Ongoing Obligations

Many of our clients are rejoicing, but not so fast! There is still much to learn and current executive actions make no changes to the requirements of Section 503 of the Rehabilitation Act or Vietnam Era Veterans Readjustment Assistance Act (VEVRAA) and thus federal contractors should continue all efforts and obligations for protected veterans and individuals with disabilities.

Staying Informed Amidst Changes

There are many unanswered questions, and we are diligently staying abreast of this as well as other incoming changes. Navigating the shifting landscape of executive orders and compliance requirements can be challenging for government contractors. Redstone GCI’s HR and compliance experts stay up to date on the latest changes impacting federal contractors, including OFCCP regulations and affirmative action obligations.

We can help you evaluate how this Executive Order affects your business, ensure your policies remain compliant, and provide guidance on adapting your HR policies and procedures. Contact us to stay ahead of regulatory changes and maintain compliance with confidence.

Written by Sheri Buchanan

Sheri Buchanan Sheri joined Redstone Government Consulting, Inc. in December 2012 as a Human Resources Consultant. She provides HR consulting services to our customers on a wide range of issues, from specific projects to an ongoing outsourced solution of the human resources function. Sheri has two decades of experience in providing a comprehensive assessment of all areas of HR, including establishing and implementing policies and practices, contract transition efforts/onboarding, and investigations. Sheri’s experience covers a broad spectrum of compensation planning and analysis for total compensation projects, reasonableness assessments including executive compensation, compensation philosophy development, total reward strategies, benefits analysis, market pay and pay equity evaluations. She regularly supports clients with the analysis and mapping of labor categories and the preparation and analysis of wage calculations and supports clients in pricing disputes with DCAA. Sheri has a wealth of experience in navigating the many compliance challenges associated with Service Contract Act and Davis Bacon Act. She has been a valuable resource to our clients in all these areas. She stays abreast of the various requirements of the Department of Labor and, of great importance to government contractors, the Office of Federal Contract Compliance Programs, as well as other federal and state regulations impacting human resources. Professional Experience Prior to joining Redstone Government Consulting, Inc., Sheri served in various roles in the Human Resources arena. While employed by a mid-size government contractor she assisted with database development, recruiting, affirmative action planning and contract proposals. Sheri later became an Employment Specialist with one of the largest employers in Huntsville, where she assisted and led managers in the interpretation and documentation of the progressive disciplinary process, conducted employee investigations and allegations of discrimination, sexual harassment, wrongful discharge and employee disputes, conducted unemployment hearings and conducted new employee orientation. Sheri developed and presented management training, administered facility compensation plan, monitored staffing budgets and wrote job descriptions and handbook revisions.

About Redstone GCI

Redstone GCI is a consulting firm focused on fulfilling the needs of government contractors in all areas of compliance. With a singular mission to help contractors through the multiple layers of “red tape,” we allow contractors to focus on what they do best – support their mission with the U.S. Government. We are home to a group of consultants made up of GovCon industry professionals, CPAs, attorneys, and retired government audit and acquisition professionals.

Our focus and knowledge of audit and compliance functions administered by DCAA and DCMA will always be at the heart of what we do. However, for the past decade, we’ve strategically grown to support other areas of the government contractor back-office with that same level of focus and expertise. We’ve added expertise in contracts management, subcontract administration, proposal pricing, various software systems, HR and employment law, property administration, manufacturing, data analytics/reporting, Grant specialists, M&A, and many other areas. When we see a trend in the needs of contractors, we act to ensure we can provide the best expertise in the market to fulfill those needs.

One thing our clients can be certain of is that with the Redstone GCI Team in your corner, there is no problem too big and no issue too technical for our team to tackle.

Topics: Human Resources, Government Regulations, Office of Federal Contract Compliance Programs