The legal battle between the U.S. Equal Employment Opportunity Commission (EEOC) and The New York Times has escalated into one of the most consequential press-freedom and employment-law clashes in recent memory. What began as a DEI-related discrimination suit has morphed into a sweeping constitutional confrontation with the Times accusing the federal government of weaponizing its enforcement machinery against a news organization for its journalism.
Employers committed to diversity, equity, and inclusion (DEI) programs have spent recent years navigating a hostile enforcement environment. Executive orders threatening broad enforcement action, expansive EEOC investigations, DOJ guidance introducing novel liability theories, and state legislation targeting DEI training have collectively created a climate of significant legal uncertainty.
Even against this backdrop, three recent legal developments offer meaningful encouragement for employers wishing to continue DEI initiatives. Courts and the federal government have begun to draw constitutional and legal limits around aggressive anti-DEI enforcement positions. While the compliance guidance we have previously provided remains relevant, the judicial record has shifted in ways that private employers should understand.
With the 2026 Colorado legislative session now complete, we have a clearer view of which labor and employment bills advanced, or stalled, and which developments deserve employers’ attention. As in recent sessions, workplace legislation remained a major focus, with proposals touching on everything from collective bargaining and worker safety to wage-setting and reporting obligations.
In this update, we revisit the bills previously identified for Colorado employers to watch, along with several additional measures introduced during the session, and explain what matters most for employers.
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
With the Colorado legislative session well underway, we have identified several bills of interest that Colorado employers should monitor. If enacted, these bills would expand worker protections and require certain employers to update their policies or procedures. While several of the bills authorize a private right of action, awareness and proactive compliance can help employers avoid costly litigation.
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.
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.
The 2025 Colorado legislative session concluded on May 7, 2025. This latest session has brought a series of significant updates that are poised to reshape the compliance landscape for employers across the state. Among the enacted bills, several are set to introduce new requirements and labor standards compelling employers to adapt swiftly. The vetoed bills, on the other hand, highlight ongoing debates that may signal future changes.
Below we summarize the major bills affecting employers that were either passed or vetoed by Governor Jared Polis.
Earlier this month, the Equal Employment Opportunity Commission (EEOC), after first attempting to reach a pre-litigation settlement, commenced litigation against Rock Snowpark on July 2, 2025, for allegedly retaliating against an employee that posted a series of Bible verses on social media that the Snowpark considered discriminatory against the LGBTQ+ community.
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.