What HR Leaders Need to Tell Executives About Federal Contractor Compliance Now

Federal contractor compliance has changed rapidly in the past 18 months, and Human Resources professionals are often the ones translating that change for senior leadership and executives. While there has been national press about some of the changes, it is critical that executives are properly briefed on which changes impact your company and how best to navigate going forward. Continuing to get support and buy-in from the leadership teams is critical to minimizing risk to the organization.

Frame the conversation for executives

While you should tailor your conversation to the expectations of your audience, the goal in a discussion with executives is typically not to overwhelm with regulatory details. High-level points are usually effective. Lead with four points: what has changed, what requirements remain, what is the organization’s exposure, and what action you recommend, including what resources are needed now. Adjust the depth to the time and forum—a five-minute leadership update should sound different from a quarterly risk committee review. The inclusion of legal counsel in the discussions will be company specific. 

The Benefit: Better-Informed Decisions

One of the greatest benefits of identifying data limitations is the ability to make decisions with a clearer understanding of what the data can, and cannot, tell you.

For example, an employer may discover that certain applicant disposition codes are too broad to determine why candidates were no longer considered for a position. Rather than assuming what those dispositions mean, the employer can evaluate the impact of the issue and determine the most appropriate approach for the analysis as well as identify possible changes that they can make going forward so they get the information that will be more helpful in the future. This does not necessarily mean the analysis cannot be completed. It means the organization has additional context when interpreting the results.

A simple briefing formula 

1. Headline: State the development in one sentence.

2. Business impact: Explain which contracts, locations, systems, or decisions are affected.

3. Risk: Describe the consequences of inaction or taking the wrong approach.

4. Recommendation: Present the action, owner, timing, and cost.

5. Decision: End with the specific approval or support you need.
   

Topics to put on the agenda

1. What the revocation of Executive Order 11246 means

Explain the change precisely: Executive Order 14173 revoked Executive Order 11246, which required federal contractors to prepare affirmative action plans to prevent race- and sex-based discrimination, and the Department of Labor directed contractors to wind down programs by April 21, 2025. This action, however, did not erase federal and state nondiscrimination law, Section 503, VEVRAA, or contractual commitments. The practical task is to identify which policies, reports, analyses, and certifications were tied specifically to Executive Order 11246 and which remain required for another reason. While this should have already happened in 2025, it’s a good reminder of the need to continue to be diligent and scrutinize programs and policies.  

2. Review the federal affirmative action obligations that remain 

Federal contractor obligations under Section 503 of the Rehabilitation Act and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) remain, including the requirement to prepare annual affirmative action programs by establishment. In August 2026, the data collection and analysis portion of the Section 503 plan did change (see  Berkshire’s blog for more information and action items), but other obligations remain.  

For both programs, employees responsible for recruiting, screening, selection, promotion, discipline, and related personnel processes must be trained about the organization’s commitments and their role in carrying them out. Do not assume that the executive team is automatically outside the training audience. Leaders who approve workforce strategy, oversee covered functions, make employment decisions, or certify information should receive an appropriately tailored briefing. 

3. The current nondiscrimination and certification risk 

The Department of Justice’s Civil Rights Fraud Initiative uses the False Claims Act (FCA) to pursue recipients of federal funds that falsely certify compliance with federal non-discrimination requirements, including those set forth in required Federal Acquisition Regulations (FAR) provisions. Federal contractors also continue to certify their compliance with Section 503 and VEVRAA through representations made in the System for Award Management (SAM.gov) system. For leaders, the message is straightforward: certifications must match actual practices, and the ramifications if they do not can be steep, as recent settlements under the FCA have shown. HR, legal, procurement, and business leaders should jointly review employment programs, decision criteria, public statements, and contract representations for consistency.  

4. The status of federal reporting 

What was a reliable, annual task has become a bit murkier in recent months. While federal reporting (such as EEO-1 and VETS-4212) may have been seen as perfunctory, it is critical that executive leadership is aware of proposed changes to some of these reports to understand the need to be thoughtful, but nimble going forward. As of the writing of this blog, the EEOC has proposed rescinding the EEO-1 data reporting requirements and has held a public hearing on the proposal. A proposal is not a final rule, so HR should continue monitoring official guidance and be ready to submit reports unless and until a final ruling says otherwise. Separately, VETS-4212 remains an annual requirement for covered contractors, with the filing deadline being September 30 annually.

5. Coordination with state and local obligations 

Federal change does not automatically change state or local duties. Pay transparency rules, affirmative action or workforce reporting obligations, record-retention requirements, and contract clauses may differ by jurisdiction. Give leaders a simple inventory showing where the organization operates, which public contracts it holds, which rules apply, who owns each filing, and where overlapping requirements create risk or duplicate work. 

6. The support HR needs 

• Budget: resources for data validation, training, outside expertise, and system changes.

• Cross-functional ownership: defined roles for HR, legal, procurement, business development, IT, communications, and business leaders.

• Agility: a rapid-review process for new rules, agency guidance, court decisions, and contract updates.

• Expertise: access to legal and compliance specialists who can distinguish a proposed change from an effective requirement.
  

The strongest executive leadership conversations are concise, current, and tied to business decisions. HR adds the most value by translating regulatory change into a clear operating plan—one that protects the organization while keeping leaders focused on fair, consistent, and well documented employment practices.