The early days of Trump 2.0 have been marked by a preoccupation with rooting out every last trace of DEI policies. Many programs are being abolished, and diversity officials are being terminated. The administration even tried to bring all federal grants and loans to a halt in order to make absolutely sure nothing was going out the door that promoted what the Office of Management and Budget called “Marxist equity.” Newly minted Defense Secretary Pete Hegseth seems to regard DEI as a bigger threat than ISIS.
What was originally a response by the Right to the supposed excesses of wokeness is now starting to resemble a new Red Scare, complete with calls for federal employees to inform on colleagues who try to conceal DEI activities.
The harmful effects of this extend beyond the career prospects of diversity bureaucrats. One example can be found at a federal agency called the Office of Federal Contract Compliance Programs. The mission of the OFCCP is to ensure that employers doing business with the federal government comply with laws and regulations regarding workplace discrimination. Given that the feds pay out some $750 billion a year to an estimated three million contractors, the OFCCP is responsible for preventing unfair treatment of a large portion of the workforce.
OFCCP’s ability to do its job has been hampered by a Trump executive order that rescinds legal authority the agency has had since 1965 to investigate discrimination and promote affirmative action (the old name for DEI). The thrust of Trump’s order is to bar the agency from pursuing the DEI portion of its mission, but it is unclear whether it will still be able to hold contractors accountable for discriminating against groups of workers based on gender, race, national origin, or sexual orientation. Instead, the order commands the OFCCP to focus on eradicating DEI, which is depicted as the real discrimination.
Trump’s action seems to put an end to decades of enforcement activity in which the OFCCP pressured companies to change their hiring, promotion, and pay practices. In Violation Tracker we document more than 500 OFCCP cases dating back to 2000. Among the largest settlements are the following:
In 2017 Qualcomm paid $19.5 million to resolve allegations that it paid female engineers less than their male counterparts.
In 2019 Goldman Sachs paid just under $10 million to settle allegations it engaged in pay discrimination against Black, Hispanic, Asian, and female employees.
About 40 other companies have paid settlements of $1 million or more. Food distributors Sysco and US Foods have been involved in the largest number of cases, with nine each. Scores of Fortune 500 corporations are among those penalized by the OFCCP.
Now the Trump Administration has in effect pardoned these companies for their mistreatment of workers. This is a significant retreat from the principle that taxpayer dollars should not go to the bad actors of the business world—and it is another sign that, despite the populist trappings, MAGA policy ends up serving the interests of corporations.