DOL Halts Action on Federal Contractor Discrimination Cases (1)

The Department of Labor shut down enforcement related to government contractors’ compliance with anti-discrimination law and affirmative action programs, according to a Friday order from Acting Labor Secretary Vincent Micone first obtained by Bloomberg Law.

In a secretary’s order sent to DOL staff on Friday evening, Micone said the agency should “immediately cease and desist” activity under Executive Order 11246, which President Donald Trump rescinded earlier this week. The directive applies to all pending cases, conciliation agreements, investigations, and complaints.

The DOL’s Office of Federal Contract Compliance Programs audited hundreds—sometimes thousands—of contractor sites annually under the now revoked executive order. Companies like Meta Platforms Inc., Google LLC, Amazon.com Inc., Pfizer Inc., and Delta Airlines Inc. were slated for compliance evaluations in the current fiscal year.

EO 11246 gave the OFCCP the authority to analyze contractors’ hiring, pay, and other employment data for potential discrimination violations that could lead to financial liability. Some of the agency’s previous high-profile discrimination cases included disputes with Oracle America Inc. and JPMorgan Chase & Co. Oracle ultimately defeated the OFCCP’s claims in an administrative court, while JPMorgan reached a settlement.

The agency also ensured that contractors developed affirmative action programs that established “placement goals” for underrepresented workers, such as women or minorities, as well as implemented outreach and recruitment plans.

Micone’s order applies to the DOL’s Office of Administrative Law Judges and Administrative Review Board, which review OFCCP enforcement actions against contractors.

Trump’s order this week didn’t address the OFCCP’s power to enforce Section 503 of the Rehabilitation Act, which covers workers with disabilities, and the Vietnam Era Veterans’ Readjustment Assistance Act, which protects military veterans.

However, Micone wrote that those components of open compliance reviews or investigations would be held in abeyance pending further guidance.