OFCCP director urges federal contractors to voluntarily report on affirmative action program wind-downs

At a glance

• Federal contractors are asked to voluntarily submit narrative information within 90 days detailing how they are winding down affirmative action plans in response to Executive Order 14173, 'Ending Illegal Discrimination and Restoring Merit-Based Opportunity' (EO), within 90 days.
• The letter highlights specific practices to address, such as race- or sex-based placement goals, exclusive training or development programs, diversity-based hiring incentives, and diversity, equity, and inclusion (DEI)-related performance metrics.
• Contractors are advised to consult legal counsel before responding, as the US Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) authority under the EO is uncertain, and submitted information may be shared with other enforcement agencies.

On June 27, 2025, Director of the US Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) Catherine Eschbach issued a letter to federal contractors asking them to volunteer information on their efforts to wind down their affirmative action plans in response to President Donald Trump’s EO.

The letter asks federal contractors to consider providing information in narrative form confirming '(1) that they have reviewed their EO 11246 affirmative action efforts; (2) whether they believe any modifications to employment and recruitment practices are necessary; and (3) if so, what those changes are and steps the federal contractor has taken to modify those practices.'

The letter encourages federal contractors to examine their previous affirmative action plans and efforts when considering which information to provide. It outlines several illustrative examples, such as the following:

• 'Federal contractors who used placement goals for certain job groups based on race or sex may wish to provide information demonstrating that they have discontinued these practices.'
• 'Federal contractors who as part of their affirmative action efforts had been providing certain employment opportunities or undertaking recruitment efforts based on race or sex may wish to provide information reflecting the discontinuation of these practices.'

The OFCCP letter further identifies practices that federal contractors may wish to address in their response. These include:

• Making trainings, sponsorship programs, leadership development programs, educational funding, or other privileges of employment available only to employees of a certain race or sex.
• Placement goals based on race or sex.
• Ratings by diversity organizations that graded employers on factors such as the provision of resources designed to promote the rise of non-white, non-male employees.
• Using applicants’ or employees’ participation in race- or sex-related (internal or external) groups or organizations as a 'plus factor' or proxy for race or sex in employment and hiring decisions.
• Tying executive compensation to meeting race- or sex-based hiring, promotion, retention, representation, or other employee-demographic-related goals.
• Mandating courses, orientation programs, or trainings that are designed to emphasize and focus on racial stereotypes.
• Encouraging employees to make referrals or conduct recruitment outreach based on a candidate’s race or sex.

The letter notes that federal contractors may also find it useful to consult the technical assistance guidance issued by the Department of Justice and Equal Employment Opportunity Commission on what constitutes unlawful discrimination related to DEI.

Given the potential for wide-ranging regulatory and litigation exposure, companies and other entities are encouraged to consult counsel to assess their specific risk through a systematic review of their internal and external affirmative action and DEI policies and programs before volunteering the requested information. While it is not clear whether the OFCCP has the authority to request or use the information – the Department of Labor’s budget proposal noted that the EO 'permanently removes the primary basis for OFCCP’s enforcement authority and program work' – the OFCCP may share any responses with other agencies or groups that are focused on enforcement of President Trump’s EO targeting unlawful DEI practices.

For more information about DEI under the Trump Administration, please contact any of the authors or your DLA Piper relationship attorney. In addition, please ask about our toolkit, Assessing risk under President Trump’s DEI Executive Order: A strategic roadmap for private employers and federal contractors.