By Joanna Colosimo and David Cohen
BLOG OVERVIEW: Former OFCCP Director Catherine Eshbach’s comments at SHRM BLUEPRINT 2025 shed light on the enforcement priorities of the Trump Administration, including refraining from race- or sex-based employment decisions and complying with regulations for individuals with disabilities and protected veterans.
At SHRM BLUEPRINT 2025, a conference focused on “the future of inclusion and diversity,” one of the marquee events featured a timely and thought-provoking conversation between Emily Dickens, Chief of Staff and Head of Government Affairs at SHRM, and Catherine Eschbach, immediate past Director of the Office of Federal Contract Compliance Programs (OFCCP) and current Equal Employment Opportunity Commission (EEOC) Principal Deputy General Counsel. This is the first time Catherine Eschbach has spoken publicly since joining the Trump Administration.
Their discussion offered human resources (HR) leaders and federal contractors a rare insight into the evolving regulatory landscape, enforcement priorities, and practical compliance strategies in the wake of significant changes to affirmative action and diversity, equity, and inclusion policy.
OFCCP’s Enforcement Focus Post-Executive Order 11246
Following the rescission of Executive Order 11246 by President Donald Trump, Eschbach noted that the foundation for much of OFCCP’s race and sex-based affirmative action initiatives has shifted. Consequently, OFCCP has redirected its enforcement efforts toward Section 503 of the Rehabilitation Act of 1973 (Section 503), addressing individuals with disabilities, and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA), focusing on protections for veterans. Eschbach emphasized that organizations subject to these statutes must ensure full compliance, as these requirements remain active and enforceable.
Eschbach further advised that organizations should refrain from implementing race or sex-based preferences in hiring, promotion, or compensation decisions. She recommended that HR departments review and update DEI policies to minimize the risk of unlawful bias. In addition, she underscored that placement goals related to race or sex are rarely permitted, stressing the importance of consulting updated EEOC guidance, the Weber-Johnson framework, and insights from Andrea Lucas’s recent remarks at New York University.
Implications for Federal Contractors and Organizations Receiving Federal Funds
OFCCP is currently working to balance enforcement actions by providing compliance assistance to organizations while finalizing three major rulemakings. Eschbach indicated that organizations should expect an increase in self-audit programs based on models from other Department of Labor agencies such as the Occupational Safety and Health Administration (OSHA), intended to help businesses identify and address compliance gaps.
Eschbach also mentioned the “whole of government” approach, which means any organization receiving federal funding—not just contractors—must consider the priorities of OFCCP, EEOC, and the Department of Justice (DOJ). Noncompliance with these regulations may affect contracts, grants, licenses, and merger approvals, potentially impacting business interests. Eschbach stated that HR professionals are expected to work proactively to anticipate and manage regulatory changes.
Eschbach’s Guidance to Contractors
In response to the significant regulatory changes brought about by Executive Order (EO) 14173 and the rescission of Executive Order 11246, Eshbach encouraged organizations to carefully review and update their prior EO 11246 affirmative action practices. She has indicated that it is essential for federal contractors to keep up robust compliance efforts under Section 503 and VEVRAA to ensure alignment with current enforcement priorities.
Eschbach also reminded organizations to be vigilant when handling demographic data, restricting its access and use solely to legal and HR teams. Such data should not be used to make employment decisions outside of compliance purposes, as improper use could expose the organization to risk.
Along those lines, it is important to remember that federal requirements under Title VII of the Civil Rights Act remain foundational. Specifically, Section 709(c) requires that employers:
Although some audience members misinterpreted her statements regarding the proper handling of employment records, she was not endorsing NOT keeping the records. Rather, she reaffirmed that such records should have restricted access based on appropriate data governance and legal process standards.
Additionally, Eshbach encouraged organizations to engage with new voices and perspectives, including critics of previous DEI practices, to maintain compliance and effectively manage risk.
Takeaways for Attendees
Eschbach concluded her session by encouraging the audience to monitor upcoming rulemakings from DOL, as over 60 regulatory actions are currently underway. The administration is evaluating potential structural changes to OFCCP, which may include transferring Section 503 and VEVRAA responsibilities to other agencies, pending budget discussions. She also encouraged audience members to foster a culture of compliance, merit, and inclusion—free from unlawful preferences. Crucially, she also reminded organizations that once the federal shutdown is over, OFCCP is “open for business” and actively enforcing Section 503 and VEVRAA.
DCI will continue to monitor developments at OFCCP and publish updates as necessary.