DOD eliminates equal employment opportunity clauses from contracts

Federal News Network reports that the Defense Department has directed contracting officers to stop including EEO clauses in new solicitations and contracts, according to a 4 March 2025 memo from John Tenaglia, principal director for defense pricing, contracting, and acquisition policy.

The move reverses a long-standing policy dating back to President Lyndon B. Johnson’s 1965 executive order, which required federal contractors to promote equal employment opportunities and prevent discrimination. Under the new directive, solicitations will no longer require provisions related to affirmative action, prior compliance reports, and workforce analysis obligations. However, contractors remain bound by Title VII of the Civil Rights Act, which prohibits discrimination based on race, sex, religion, or national origin.

Nichole Atallah, a partner at PilieroMazza, told Federal News Network that while the change will reduce compliance costs, she cautioned contractors against making immediate changes without consulting legal counsel, noting that state and local laws often still impose EEO-related requirements. “This is going to be a plaintiff’s lawyer’s dream,” Atallah warned, predicting potential missteps leading to lawsuits.

It reveals DEI often played an employee benefits and marketing in the private sector, feeding employees attractive messaging to improve satisfaction, never mind employers' actions. One need only look at the leadership pages of countless mediocre Beltway firms to see an overrepresentation.

For now, DOD contracting officers will phase out the affected clauses, though existing contracts set to expire within six months will remain unchanged.