Risk & ROI of Continuing Nondiscrimination Practices Post-EO 11246
The Misconception
With the revocation of EO 11246 and the introduction of EO 14173, some federal contractors are considering pausing internal nondiscrimination practices built over years.
This is a costly mistake.
The Reality
- EO 14173 still prohibits workplace discrimination based on race, gender, and other protected classes.
- It increases enforcement risk by tying compliance directly to the False Claims Act—creating potential for treble damages, debarment, and government investigations.
- Pausing best practices now introduces new exposure, not less.
The Financial Risk Is Clear
2023 Discrimination Settlements:
Federal contractors following EO 11246 paid 9x less in settlements than private employers.
What EO 11246 Practices Offer Federal Contractors:
- Built-in legal defense through data-backed employment decision-making
- Cost containment by detecting and resolving risk early
- Increased enterprise value by reducing compliance red flags
- Stronger position for M&A by demonstrating workforce risk controls
Compliance = Protection = Profit
Continuing nondiscrimination practices—including self-audits, adverse impact analysis, and documentation—isn’t a moral choice. It’s a strategic shield against legal and reputational harm.
Pausing sends the wrong signal to regulators, and investors. The most cost-effective move is to stay the course to hedge against discrimination.
Cost Comparison: Continuing vs. Pausing EO 11246-Aligned Practices
Recommendation
Maintain EO 11246-aligned practices under EO 14173 to protect value, reduce liability, and demonstrate good-faith compliance.
Continuing EO 11246-aligned practices is low cost, high protection, and value-preserving. Pausing those practices is a short-term cost cut that invites long-term legal and financial consequences.
The enforcement of Executive Order 14173 is transforming compliance requirements for federal contractors. Join us on April 30, 2025, at 10:30 AM PST for an exclusive virtual roundtable led by government officials for clear, actionable guidance to navigate the evolving regulatory landscape confidently.
Have questions about what your organization should do next? Our compliance experts are here to help you adjust, prepare, and protect your organization under EO 14173.