Employers that contract with the federal government often have additional employment obligations beyond what is required of other employers including, but not limited to, affirmative action, the Service Contract Act, the Davis-Bacon Act, the Uniformed Services Employment and Reemployment Rights Act, and the False Claims Act. For this reason, federal contractors and subcontractors are acutely aware of the importance of staying abreast of legal developments and trends impacting their work and workforces and the potential costs of non-compliance. Cozen O’Connor has assembled a team of experienced lawyers to provide the full spectrum of assistance employers need in this space.
Our team carefully monitors the evolving affirmative action and diversity, equity and inclusion landscape and how all three branches of the federal government are addressing these matters. Affirmative action obligations in particular are changing. In January 2025, Executive Order 11246 (which required affirmative action to recruit, hire, and promote women and minorities when those groups are "underutilized" in the employer's workforce) was rescinded. It remains to be seen whether any changes will be made to the Office of Federal Contract Compliance Programs’ (OFCCP) enforcement of Section 503 of the Rehabilitation Act (which requires affirmative action to recruit, hire, and promote individuals with disabilities) and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) (which requires affirmative action to recruit, hire, and promote covered veterans), the requirements for which are based on the underlying statutes.
Some of the changes in affirmative action expand beyond employers who contract with the federal government. In June 2023, U.S. Supreme Court rulings in Students for Fair Admissions, Inc. v. President and Fellows of Harvard College and Students for Fairs Admissions, Inc. v. University of North Carolina impacted affirmative action in higher education and the reach of those decisions continues to be examined. State Attorney Generals are weighing in on affirmative action and diversity, equity and inclusion initiatives and have conflicting views and priorities depending on the State.
We advise employers on how to navigate this challenging landscape on the federal, state and local levels by providing advice on compliant policies and practices, government contractor and subcontractor status, single employer issues, compensation audits, and more.
In all matters, we proceed in the spirit of partnership with our clients, getting to know both your business and your people so we can help you put your best foot forward in an effective, efficient and compliant manner.