Trump’s Executive Order on diversity training creates new uncertainty for employers

President Donald Trump recently issued Executive Order (EO) 13950, innocuously titled “Combating Race and Sex Stereotyping,” which has ignited a storm of controversy among employers that do contracting with the federal government. Among other things, the EO bars federal contractors and subcontractors from conducting certain types of racial sensitivity trainings.

EO’s specifics

More specifically, the EO states federal contractors “shall not use any workplace training that inculcates in its employees any form of race or sex stereotyping or any form of race or sex scapegoating.” The prohibition includes any training that “an individual, by virtue of his or her race or sex, is inherently racist, sexist, or oppressive, whether consciously or unconsciously.” In addition, the order places similar restrictions on entities receiving federal funding and grants.

Although the EO took effect immediately, its requirements, with certain exceptions, apply only to contracts entered into after November 21, 2020.

OMB guidance

Shortly after the EO was issued, the Office of Management and Budget (OMB) issued a memorandum to provide guidance to federal agencies implementing it:

• The agencies must identify all diversity, equity, and inclusion (DEI) training programs conducted by them or outside vendors and their costs.
• They must review all government contractor workplace training programs to determine whether they comply with the order.

All statements of work and future government contracts also must comply with the EO’s requirements.