BDO – Since the issuance of Executive Order 14173 (“Ending Illegal Discrimination and Restoring Merit-Based Opportunity”) in January 2025, the regulatory and enforcement landscape surrounding diversity, equity, and inclusion (DEI) for federal contractors has continued to shift. Numerous developments in DEI compliance are now affecting federal contractors, leading to enforcement of new contractual obligations and increasing exposure tied to “illegal DEI” practices. This article summarizes the current state of DEI compliance, key enforcement developments, and practical steps federal contractors should take now.

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