Since his first week in office, President Trump has signed dozens of executive orders, many of which address changes within the federal workforce. Many of the executive orders passed that will affect the federal workforce focus mainly on diversity, equity, and inclusion (DEI) initiatives. While mostly directed toward federal employees, businesses that work closely with the federal government should pay careful attention to these changes.
Today’s blog reviews key Executive Orders and their impact on contractors and businesses.
Executive Order on Restoring Accountability to Policy-Influencing Positions
Key Changes:
This order focuses on increasing accountability in the federal workforce, especially within positions that influence policy decisions. The goal is to ensure that individuals in key policy roles are qualified and held to higher standards. The order also simplifies the dismissal process for those in such positions.
For Contractors and Businesses:
Although this primarily focuses on federal employees, businesses working with the government may be impacted if they have positions involving policy influence or advisory roles. Contractors should be aware that the government may prioritize staffing positions that align with political goals more closely.
Current Legal Action:
The National Treasury Employees Union (NTEU) filed a lawsuit against President Trump’s “Restoring Accountability to Policy-Influencing Positions” executive order. NTEU argues that it violates civil service law and undermines the intent of Congress. The union claims that Trump’s order bypasses the necessary procedures under the Administrative Procedure Act and illegally removes job protections for federal employees.
Executive Order on Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government
Key Changes:
This action affirms that biological sex takes precedence over gender identity in government policies, particularly in areas related to women’s rights and protections. The order aims to ensure that policies maintain a distinction between biological sex and gender identity and that laws or regulations affecting women—such as those in women’s sports, single-sex spaces, and protections against discrimination—are based on biological sex.
For Contractors and Businesses:
While this order does not directly enforce requirements on non-government employers, federal contractors and recipients of federal funding may face new directives. Challenges and litigation regarding its applicability to private-sector companies are likely to arise in the future.
Executive Order on Ending Radical and Wasteful Government DEI Programs and Preferencing
Key Changes:
This order abolishes or reduces DEI programs, including DEI-related performance requirements for federal employees. Federal agencies may need to dismantle their current DEI structures, including removing positions like Chief Diversity Officers. The order states that these programs have been ineffective and too costly, urging the government resources to be reallocated elsewhere.
For Contractors and Businesses:
Private contractors and businesses with federal contracts may see a reduction in DEI-related requirements. They could face less pressure to meet diversity quotas or DEI performance standards when bidding for government contracts, simplifying compliance but potentially changing how DEI initiatives are structured internally.
Executive Order on Reforming the Federal Hiring Process and Restoring Merit to Government Service
Key Changes:
The federal hiring process will focus on hiring “highly skilled Americans dedicated to the furtherance of American ideals, values, and interests.” The Federal Hiring Plan prohibits hiring an individual based on their race, gender, or religion. The goal is to emphasize qualifications, skills, and a commitment to the Constitution, ensuring that government employees are chosen based on merit. To aid in this, modern technology will likely be incorporated during the recruitment and selection process.
For Contractors and Businesses:
Companies working with federal agencies will likely see a shift toward a skills-based approach to hiring. This could impact the types of candidates that contractors will be expected to hire and may lead to greater emphasis on qualification over demographic factors.
Executive Order on Ending Illegal Discrimination and Restoring Merit-Based Opportunity
Key Changes:
This order aims to eliminate race- and sex-based preferences in both government and private sector policies, focusing on merit and individual achievement. Additionally, previous executive orders related to diversity and inclusion are revoked, including Executive Order 11246 (Equal Employment Opportunity), which required affirmative action and prohibited discrimination based on race, religion, sex, gender identity, or national origin.
On February 5, U.S. Attorney General Pam Bondi issued the memorandum titled “Ending Illegal DEI and DEIA Discrimination and Preferences.” The memorandum states that by March 1, 2025, the Civil Rights Division and Office of Legal Policy must submit a report to the Associate Attorney General. This report will contain recommendations on enforcing federal civil laws and other actions to encourage the private sector to end illegal discrimination and preferences, particularly policies related to DEI and DEIA. The memorandum aligns with the plan outlined by this order and signals a serious commitment to enforcement.
For Contractors and Businesses:
The revocation of Executive Order 11246 will primarily impact federal contractors, who will no longer be required to maintain affirmative action programs for women and minorities. However, they are still obligated to uphold such programs for veterans and individuals with disabilities, including the requirement to prepare annual plans.
These executive orders reshape federal employment practices and policies, particularly in areas like diversity, hiring standards, and policy accountability. Contractors and businesses that work with the federal government should stay informed about these changes as they may impact compliance requirements and internal policies.
Lockaby PLLC will continue to follow the ongoing changes and ensure our readers stay informed.
