On June 11, 2025, Assistant Attorney General Brett Shumate issued a memorandum entitled Civil Division Enforcement Priorities (the “Memorandum”), outlining five areas of focus for Department of Justice (“DOJ”) Civil Division investigations and enforcement actions. Among these priorities is “combatting unlawful discriminatory practices in the private sector.”

Referencing President Donald Trump’s Executive Order 14173 (Ending Illegal Discrimination and Restoring Merit-Based Opportunity), which calls for the elimination of “illegal private-sector DEI preferences, mandates, policies, programs, and activities,” the Memorandum states that “the Civil Division will use all available resources to pursue affirmative litigation combatting unlawful discriminatory practices in the private sector.” This will include “aggressively investigat[ing] and, as appropriate, pursu[ing] False Claims Act violations against recipients of federal funds that knowingly violate civil rights laws.”  The Civil Division “will work with the Civil Rights Division, relators, other whistleblowers, and federal agencies” as part of this initiative.

Although the precise contours of what constitutes “illegal” DEI policies remains uncertain, the memorandum is yet another warning to federal contractors and grantees that their diversity, equity and inclusion initiatives are a focal point of federal enforcement efforts. The Memorandum follows the DOJ’s recently established Civil Rights Fraud Initiative, referenced in the Memorandum, which underscores the DOJ’s focus on advancing the objectives of Executive Order 14173 through the FCA and other available enforcement mechanisms.

To the extent they have not yet done so, federal contractors and grantees should carefully review their DEI policies and practices to ensure they comply with federal civil rights laws, taking into account the Administration’s view of what is permissible under those laws.  Such analyses should be coordinated with counsel to maximize the ability to assert privilege.

Proskauer’s Government Contractor Compliance & Regulatory Update will continue to monitor and report on OFCCP-related developments. 

Posted in Department of Justice, Discrimination, False Claims Act, Federal Contractors, Presidential Actions and Executive Orders
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Photo of Guy Brenner Guy Brenner

Guy Brenner is a partner in the Labor & Employment Law Department and leads the Firm’s Washington, D.C. Labor & Employment practice. He is head of the Government Contractor Compliance Group, co-head of the Counseling, Training & Pay Equity Group and a member…

Guy Brenner is a partner in the Labor & Employment Law Department and leads the Firm’s Washington, D.C. Labor & Employment practice. He is head of the Government Contractor Compliance Group, co-head of the Counseling, Training & Pay Equity Group and a member of the Restrictive Covenants, Trade Secrets & Unfair Competition Group. He has extensive experience representing employers in both single-plaintiff and class action matters, as well as in arbitration proceedings. He also regularly assists federal government contractors with the many special employment-related compliance challenges they face.

Guy represents employers in all aspects of employment and labor litigation and counseling, with an emphasis on non-compete and trade secrets issues, medical and disability leave matters, employee/independent contractor classification issues, and the investigation and litigation of whistleblower claims. He assists employers in negotiating and drafting executive agreements and employee mobility agreements, including non-competition, non-solicit and non-disclosure agreements, and also conducts and supervises internal investigations. He also regularly advises clients on pay equity matters, including privileged pay equity analyses.

Guy advises federal government contractors and subcontractors all aspects of Office of Federal Contract Compliance Programs (OFCCP) regulations and requirements, including preparing affirmative action plans, responding to desk audits, and managing on-site audits.

Guy is a former clerk to Judge Colleen Kollar-Kotelly of the US District Court of the District of Columbia.

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Photo of Mallory Knudsen Mallory Knudsen

Mallory Hart is an associate in the Labor & Employment Law Department and a member of the Employment Litigation & Employment Counseling, Training, and Pay Equity groups.

Mallory attended Loyola University New Orleans College of Law, where she graduated magna cum laude and…

Mallory Hart is an associate in the Labor & Employment Law Department and a member of the Employment Litigation & Employment Counseling, Training, and Pay Equity groups.

Mallory attended Loyola University New Orleans College of Law, where she graduated magna cum laude and earned the distinction of Crowe Scholar. While in law school, Mallory served as Candidate Development and Symposium Editor for the Loyola Law Review. She competed as an oralist and later served as team coach for the National Moot Court Team. Mallory also served as Social Chair and Vice President of the Student Bar Association. During law school, Mallory also served as an extern to the Honorable Jay C. Zainey at the United States District Court for the Eastern District of Louisiana. Upon graduation, Mallory was selected for the Order of Barristers.

During her final year of law school, Mallory worked as a Rule XX Student Practitioner in the Stuart H. Smith Law Clinic and Center for Social Justice-Children’s Rights Clinic, where she submitted an amicus brief to the Louisiana State Supreme Court.

Mallory currently serves as a junior member of the Louisiana State Law Institute.

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Photo of Olympia Karageorgiou Olympia Karageorgiou

Olympia Karageorgiou is an associate in the Labor Department and a member of the Employment Litigation & Arbitration Group.

During her time at Proskauer, Olympia has focused on a wide range of employment matters, including employment discrimination litigation, due diligence, and policies, handbooks…

Olympia Karageorgiou is an associate in the Labor Department and a member of the Employment Litigation & Arbitration Group.

During her time at Proskauer, Olympia has focused on a wide range of employment matters, including employment discrimination litigation, due diligence, and policies, handbooks and training, among others. Olympia has gained experience across a wide variety of industries including financial services, education, sports, and media and entertainment.

Olympia earned her J.D. from Yale Law School, where she was co-director of the Clinical Student Board and a member of the Reentry Clinic. While at Yale, she was also Academic Development co-chair of the Yale Black Law Students Association and served as a director of the Rebellious Lawyering Conference.

Prior to law school, Olympia was an AmeriCorps member in Dallas, Texas, focusing on issues related to education and social equity.

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