On Friday, March 14, the Fourth Circuit Court of Appeals ended the injunction temporarily halting the administration from enforcing its executive orders relating to Diversity, Equity and Inclusion (DEI). Read their decision here. This means that federal contractors and grant recipients should be prepared for agency demands on the following two renewed requirements:
- Certification Requirement: Contractors and grantees must certify that they do not operate any programs promoting DEI that violate any applicable Federal anti-discrimination laws.
- Contractual Term: Contractors and grantees must agree, through a new term in their contracts, that “compliance in all respects with all applicable Federal anti-discrimination laws is material to the government’s payment decisions,” making noncompliance a basis for claims under the False Claims Act.
We addressed this issue in a prior alert providing more details and recommendations for next steps. Employers looking for details on how the Court of Appeals decision could impact them in other ways click here.
PLG’s executive orders task force continues to monitor and provide updates on recent executive orders and enforcement actions.
