The 2026 DEI Executive Order recently issued by the White House imposes new obligations on federal contractors and subcontractors, to prevent “artificial” and “unnecessary” DEI program costs from being passed on to the government in federal courts. It limits the definition of racially discriminatory DEI activities to employment decisions, contracting activities such as vendor agreements
Fair is Foul: Inside the EEOC’s Sweeping Subpoena in the Nike DEI Pattern or Practice Discrimination Investigation—and What Employers Should Know
This is not the macabre tale of Macbeth. It is the new legal reality. The EEOC’s sweeping subpoena to Nike signals a dramatic change in EEOC enforcement posture toward Diversity, Equity & Inclusion programs previously regarded as permissible, a shift that demands careful navigation by employers.
Expansion of Illinois Right to Privacy in the Workplace Act Clarifies Obligations Regarding Mismatch Letters During Verification of Employment Eligibility
On December 12, 2025, Illinois Governor Pritzker signed into law SB 2339 (“Amendment” or “SB 2339”), which amends the Right to Privacy in the Workplace Act. The law increases protections for workers’ privacy and restricts employers from taking adverse action against employees solely based on receiving a tentative non-confirmation letter (“mismatch letter”) regarding verification of employment eligibility. The passage of SB 2339, a response to increased federal immigration enforcement, ensures that employers satisfy federal requirements without compromising employee privacy. The Amendment became effective immediately, applies to public and private employers of Illinois employees and prospective employees, and subjects employers to civil actions, including a private right of action and penalties for non-compliance.
Don’t Cry for Me, OFCCP. The Truth Is, It Hasn’t Left Yet
Eva Perón’s farewell song from “Evita” comes to mind as the Office of Federal Contract Compliance Programs (OFCCP or Agency) loses its authority and prepares to take its final bow. Aligning with the Administration’s efforts to dissolve the agency, OFCCP has continued to send notices to federal contractors.
State Pay Disclosure Compliance Update: Massachusetts Requires Disclosure of Pay Ranges Beginning October 29, 2025
Beginning on October 29, 2025, covered employers in Massachusetts are required to disclose the minimum and maximum amount of compensation that an employer reasonably and in good faith expects to pay for a particular and specific position. Disclosure is required in external job postings, to employees who request such information, and to internal job candidates.
Supreme Judicial Court Limits Scope of Massachusetts Noncompetition Agreement
The Massachusetts legislature passed the Massachusetts Noncompetition Agreement Act (MNAA) in 2018, culminating a longstanding effort to balance employers’ rights to protect legitimate business interests—such as trade secrets, goodwill, and proprietary information—against employees’ rights to pursue future job opportunities. The law imposes restrictions on the use of noncompetition agreements entered on or after October 1, 2018, with employees who work or reside in Massachusetts for at least 30 days prior to the termination of employment. On June 13, 2025, in Miele v. Foundation Medicine, Inc., the state Supreme Judicial Court issued a unanimous decision that narrows the potential scope of the MNAA’s definition of noncompetition agreements and preserves for employers the ability to protect one of their most valuable assets, their employees.
Executive Agencies Confirm Demise of OFCCP and Identify Private Sector Enforcement Targets
The Equal Employment Opportunity Commission (EEOC) and the Department of Labor released their 2026 Congressional Budget Justifications (CBJ) on May 30, 2025, providing valuable information related to the EEOC’s enforcement intentions and the future of the Office of Federal Contract Compliance Programs (OFCCP). A CBJ is the annual budget justification materials of a federal agency or a component of a federal agency that are submitted in conjunction with the President’s annual budget submission. The CBJ provides a detailed description of each program and information about how the agency will use funds, including increases and decreases in spending. The EEOC CBJ identifies four enforcement priorities and anticipated investigations into systemic intentional discrimination using the pattern or practice method of proof. Additionally, the EEOC CBJ and the Department of Labor’s Budget in Brief confirm that the OFCCP will be extinguished with its remaining two programs distributed to the EEOC and the Veterans Employment Training Service.
EEOC Technical Assistance Documents on DEI Programs Increase Pressure on Employers
On March 19, 2025, the U.S. Department of Justice (DOJ) Office of Public Affairs issued a press release announcing two technical assistance documents jointly released by the U.S. Equal Employment Opportunity Commission (EEOC) and the DOJ. The stated purpose of the technical assistance is to encourage whistleblowers to file discrimination charges with the EEOC relating to unlawful diversity, equity, and inclusion (DEI) programs or practices or, in the case of state and local government employees, with the Department of Justice. It provides employees with instructions on how and where to file a claim of DEI related discrimination, along with descriptions of the types of DEI-related programs and activities that may constitute unlawful DEI under the current Administration’s policies. For employers, the technical guidance offers insight into the types of DEI activities that will be targeted by the Administration.
Federal Contractors and Employers with DEI Initiatives: Three Takeaways from SCOTUS Decision Striking Down Racial Preferences
On June 29, 2023, in a 6-3 decision authored by Chief Justice Roberts, Students for Fair Admissions, Inc. v. President and Fellows of Harvard College, the U.S. Supreme Court (“Court” or “Supreme Court”) held that college and university race-conscious admission decisions at Harvard University and the University of North Carolina violate the Equal Protection Clause of the 14th Amendment (“the Harvard-UNC Decision”). The specifics of the race-conscious admissions process used by these higher education institutions and the Supreme Court’s opinion is more fully discussed in Husch Blackwell’s recent post, Supreme Court Prohibits Consideration of Race in College Admissions. The majority and concurring opinions, though, have prompted speculation about the decision’s potential impact on federal contractors subject to affirmative action obligations to provide equal employment opportunities to minorities and women under Executive Order 11246 as well as on employers that have voluntarily adopted diversity, equity, and inclusion (DEI) initiatives. While the Harvard-UNC Decision addressed racial preferences as opposed to affirmative action to ensure equal employment opportunities, the decision provides federal contractors and private employers with some guideposts for lawful implementation of affirmative action and DEI practices.
OFCCP Publishes Annual Veteran Hiring Benchmark and New Self-Identification of Disability Form
Veteran Hiring Benchmark Decreased to 5.4%
OFCCP released the national annual veteran hiring benchmark effective March 31, 2023, which measures the national percentage of veterans in the civilian labor force. Federal contractors are required to compare their percentage of hires who are protected veterans in each establishment on a facility-wide basis to the annual veteran hiring benchmark to measure the effectiveness of outreach and recruitment of veterans for employment. The national annual veteran hiring benchmark was decreased from 5.5% to 5.4% as of March 31, 2023. If a federal contractor has elected to calculate an individualized hiring benchmark using state-level availability of veterans, OFCCP has also updated state-level availability data.