The New DEI Reality 

DEI in 2025 isn’t just a culture initiative; it’s a compliance risk. With Executive Order 14173 revoking affirmative action mandates for federal contractors, EEOC/DOJ guidance tightening what’s permissible, and DOL enforcement partially enjoined in court, HR leaders face a new balancing act: protect inclusion efforts while staying firmly within the law. 

1. Executive Order 14173 and Contractor Compliance 

Issued in January 2025, EO 14173 revoked Executive Order 11246. This marks a sharp turn away from federally mandated affirmative action. However, obligations under Section 503 (disability) and VEVRAA (veterans) remain in force. 

• OFCCP has proposed rescinding the EO 11246 regulations, but these are not yet final. 

• Contractors should retain AAP documentation and track OFCCP updates until transition details are complete. 

2. EEOC/DOJ Guidance: When DEI Crosses the Line 

In March 2025, the EEOC and DOJ jointly clarified that DEI programs can violate Title VII if protected traits (like race or sex) influence hiring, promotion, training, or ERG participation. 

• Quotas, trait-based preferences, or exclusive opportunities are high-risk. 

• Neutral, merit-based and job-related criteria are essential. 

• Documentation is your best defense. 

3. Certification & Litigation Risks 

Some agencies now require DEI compliance attestations tied to funding or contracts. 

• The DOL’s certification/termination enforcement is currently enjoined by a federal court, but litigation is ongoing. 

• DOJ is signaling potential False Claims Act exposure if organizations misrepresent compliance while running questionable programs. 

4. DEI in 2025: What Employers Should Do Now 

Focus Area	HR Action
Programs	Audit for quota/trait language. Align with neutral, skills-based inclusion.
Documentation	Keep records of hiring/promotion criteria and decisions.
Contracts	Maintain Section 503/VEVRAA compliance and monitor OFCCP rules.
Training	Educate managers on inclusive but compliant practices.
Certifications	Consult legal counsel before signing any attestations.

5. Why This Matters 

DEI is still critical for retention, engagement, and brand reputation. But in 2025, the legal environment demands programs that are inclusive and defensible. Done right, DEI strengthens culture and reduces risk. Done wrong, it invites lawsuits, audits, or federal investigations. 

Download the Free Resource 

MP created a one-page PDF: “DEI in 2025: Navigating Compliance and Culture in a Polarized Climate.” 
It distills EO 14173, EEOC/DOJ guidance, and HR action steps into a quick reference tool. 

Final Word 

DEI in 2025 isn’t disappearing—but it is being reshaped. The winners will be employers who keep their programs merit-driven, compliant, and still focused on building workplaces where people want to stay. MP is here to help you do exactly that. y compliance and stay ahead of the curve. 

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