Diversity, Equity, & Inclusion

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.

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.

In previous legal updates, our team analyzed the recent executive order entitled Ending Illegal Discrimination and Restoring Merit-Based Opportunity, which encourages, but does not mandate, that private employers end certain Diversity, Equity, and Inclusion (DEI) practices that the order considers “illegal.” Despite the executive branch’s shift in its approach to DEI, the underlying legal framework for private employers has not changed. The same is true for the recent executive order on gender identity entitled “Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government.” While this order introduces significant changes for federal agencies and federal contractors, private employers remain largely unaffected at this time.

In our ever-evolving world, fostering cultural sensitivity is paramount for creating inclusive and respectful work environments and minimizing legal risks. Language plays a crucial role in shaping our perceptions, and unfortunately, some words used in everyday conversation may perpetuate stereotypes and contribute to cultural insensitivity. This Native American Heritage Month, employers should consider abandoning the following words and phrases, and encourage their employees to do the same, in an effort to embrace more inclusive work environments, and mitigate the risk of discrimination claims brought by indigenous members of their workforce.