Since 1965, contractors have had some federal obligations to give preference or "set-asides" to minority-owned and women-owned businesses. Many reprographics firms – those who applied for and received WBE or MBE (or DBE) certifications – benefited from these requirements. Now, however, those programs seem to have come to an end with President Trump’s executive order that revoked Executive Order 11246, the foundational order related to affirmative action for federal contractors.
Here is the executive summary from a legal update by Seyfarth Shaw LLP, a law firm specializing in labor issues, about the situation:
Seyfarth Synopsis: On January 21, 2025, President Trump issued an Executive Order entitled “Ending Illegal Discrimination and Restoring Merit- Based Opportunity.” The Order revokes several Executive Orders, including EO 11246, the foundational Executive Order from 1965 which imposed affirmative action obligations on federal government contractors and subcontractors. President Trump’s Order expressly prohibits OFCCP from promoting “diversity,” requiring affirmative action, and encouraging or allowing contractors to engage in “workforce balancing” with regard to certain characteristics. It also requires that federal contract and grant recipients certify that they do not operate DEI programs that violate federal anti-discrimination laws. By making these certifications “material” for False Claims Act purposes, the Order opens the door to both government enforcement and private whistleblower suits with treble damages. In addition to ending federal contractor affirmative action requirements, President Trump’s Order directs all federal agencies, with assistance from the Attorney General, to “take all appropriate action” to advance the policy of eliminating “DEI discrimination” or “unlawful DEI” throughout the private sector. The Order also mandates sweeping changes to federal policy with regard to diversity, equity, and inclusion (DEI) or diversity, equity, inclusion and accessibility (DEIA) initiatives, directing all federal agencies to eliminate DEI- related references to certain federal activities, including federal acquisitions, contracting, grants, and financial assistance. (Click here if you’d like to read the whole report form Seyfarth).
We would like to hear from IRgA members who feel they will be affected by this change, either positively or negatively. If you would like to comment on this topic, please use the comments section below, or contact Ed Avis, managing director, at ed.avis@irga.com.