Trump FY2018 Budget Slashes DOL, Merges OFCCP with EEOC, and Offers Paid Family Leave

May 24, 2017

 

The Trump Administration’s FY2018 budget proposes reducing the Labor Department’s appropriation by $2.4 billion for FY2018 from $12.1 billion to $9.7 billion-a 20 percent reduction with cuts coming mostly from workforce training programs.

 

 

 Budget would merge OFCCP into EEOC

 

 

After months of speculation, the FY2018 budget confirms that the Administration proposes to merge OFCCP into the EEOC by the end of FY2018:

 

 

The 2018 Budget proposes merging OFCCP into the Equal Employment Opportunity Commission (EEOC), creating one agency to combat employment discrimination. OFCCP and EEOC will work collaboratively to coordinate this transition to the EEOC by the end of FY 2018. This builds on the existing tradition of operational coordination between the two agencies. The transition of OFCCP and integration of these two agencies will reduce operational redundancies, promote efficiencies, improve services to citizens, and strengthen civil rights enforcement.

 

 

In addition, the budget would reduce OFCCP’s budget by 16 percent–from $105 million in FY2017 to $88 million in FY2018.

 

 

Budget’s impact on other enforcement agencies

 

 

As to other enforcement agencies, the Equal Employment Opportunity Commission (EEOC) would receive $363.8 million FY2018 under the budget, representing a modest reduction of $700,000 from FY2017. Although the target of strong criticism, the National Labor Relations Board (NLRB) received a budget cut of only about 6 percent from $274 million to $258 million.  The Wage and Hour Division’s spending will remain basically unchanged, which may indicate an intent to shelve the still-pending overtime rules.

 

 

Budget proposes paid family leave

 

 

Finally, the proposed FY2018 budget provides over $18 billion in additional funding to the Labor Department’s unemployment insurance program for paid parental leave. The proposal envisions a federal-and-state paid parental leave program beginning in 2020. The program would provide six weeks of paid leave to new birth and adoptive parents. Like the Administration’s Medicaid proposal, states would be given significant discretion in determining the final structure of the leave program.

 

 

Takeaways

 

 

The budget is the most tangible expression of the effort to reduce the size and reach of the federal government. However, Congressional leaders’ response to President Trump’s budget is that it is “dead on arrival.”  It is also important to note that both employer groups and civil rights advocates have raised serious objections the budget’s merger of OFCCP and EEOC.  In fact, The Institute for Workplace Equality (The Institute), of which David Fortney is a co-chair, submitted a letter to Secretary Acosta and OMB Director Mulvaney strongly objecting to the proposal.  If you have additional questions about the impact of President Trump’s budget, please contact your FortneyScott counsel.

 

August 21, 2025
We are pleased to announce that FortneyScott attorney David Fortney has been recognized as one of The Best Lawyers in America for 2026, in recognition of outstanding achievement and contributions to the field of Labor and Employment law. This marks a continuation of his recognition in The Best Lawyers in America since 2008, reflecting a sustained commitment to excellence, innovation, and leadership. It underscores the impact of his work within the professional community. We extend our congratulations on this well-deserved recognition.
August 18, 2025
The U.S. Department of Justice (DOJ), Civil Division is sending Civil Investigative Demands (CIDs) to federal contractors seeking information on their DEI practices, under its authority to investigate False Claims Act (FCA) claims. Flowing from President Trump’s Executive Order 14173, which seeks to limit DEI efforts, the DOJ recently launched the Civil Rights Fraud Initiative, which utilizes the FCA to investigate and pursue claims against recipients of federal funds (including federal contractors) that their DEI practices violate federal civil rights laws. The focus of these investigations will likely be: Discriminatory preferences/goals: DEI programs that assign benefits or burdens based on race, ethnicity, or national origin. Use of proxies to mask discrimination: Practices using criteria like "cultural competence" or "lived experience" as proxies for protected characteristics in hiring or promotion decisions. Segregation in the workplace: Limiting membership in affinity groups or separating employees by protected characteristics during training. Discriminatory training programs: DEI training that promotes stereotypes, excludes individuals based on protected characteristics, or creates a hostile environment. Failure to protect against antisemitism: Institutions accepting federal funds that do not adequately address antisemitism or other civil rights violations. Organizations found to be in violation of the FCA can face significant penalties, including treble damages (three times the amount of damages incurred by the government), civil penalties for each false claim, and reputational harm. As a result, all federal contractors and grant recipients should be on high alert for any communication from DOJ and should immediately notify internal counsel if any such communication is received. Please contact your FortneyScott attorney or email us at info@fortneyscott.com for additional information on how to be prepared and to respond to these DOJ investigations and other best practices recommendations.
August 18, 2025
As the Trump Administration reshapes the U.S. Department of Labor (DOL), employers and federal contractors face significant shifts in agency leadership, budget priorities, enforcement programs, and regulatory strategies. Join FortneyScott attorneys for an in-depth webinar covering what these changes may mean for your organization. Key Topics to be Covered Include: New Leadership: Review of confirmed and pending DOL appointees, including Secretary Chavez-DeRemer and Deputy Secretary Keith Sonderling. Compliance & Self-Audit Programs: Expansion of opinion letter guidance and voluntary audit initiatives across W&H, VETS, OSHA, EBSA, MSHA, and OLMS. Aggressive Deregulatory Agenda: Efforts to revoke EO 11246 regulations, registered apprenticeship affirmative action requirements, and legacy EBSA guidance. Regulatory Revisions & Enforcement: Reforms to Section 503, VEVRAA, tip-credit rules, and child labor standards — including new penalty frameworks. Status of Biden-Era Rules: Updates on independent contractor, overtime, minimum wage, and PLA-related regulations. Proposed FY2026 Budget: 35% overall reduction, including workforce downsizing and potential elimination of OFCCP, Job Corp, and the Women’s Bureau. Strategic Considerations: How the return of the PAID program and potential OFCCP self-audit options may affect employer risk exposure.
August 1, 2025
As the Trump Administration reshapes the U.S. Department of Labor (DOL), employers and federal contractors face significant shifts in agency leadership, budget priorities, enforcement programs, and regulatory strategies. Join FortneyScott attorneys on Thursday, August 14th at noon EDT for an in-depth webinar covering what these changes may mean for your organization. CLICK HERE to register. Key Topics to be Covered Include: New Leadership: Review of confirmed and pending DOL appointees, including Secretary Chavez-DeRemer and Deputy Secretary Keith Sonderling. Compliance & Self-Audit Programs: Expansion of opinion letter guidance and voluntary audit initiatives across W&H, VETS, OSHA, EBSA, MSHA, and OLMS. Aggressive Deregulatory Agenda: Efforts to revoke EO 11246 regulations, registered apprenticeship affirmative action requirements, and legacy EBSA guidance. Regulatory Revisions & Enforcement: Reforms to Section 503, VEVRAA, tip-credit rules, and child labor standards — including new penalty frameworks. Status of Biden-Era Rules: Updates on independent contractor, overtime, minimum wage, and PLA-related regulations. Proposed FY2026 Budget: 35% overall reduction, including workforce downsizing and potential elimination of OFCCP, Job Corp, and the Women’s Bureau. Strategic Considerations: How the return of the PAID program and potential OFCCP self-audit options may affect employer risk exposure. Who Should Attend: Compliance professionals, in-house counsel, HR and inclusion leaders, and anyone with responsibility for compliance with labor and employment laws.
July 31, 2025
On July 30, 2025, the U.S. Court of Appeals for the Ninth Circuit in a panel decision affirmed the District Court’s Order in Center for Investigative Reporting v. DOL compelling the DOL to disclose federal contractors’ EEO-1 reports in response to a Freedom of Information Act (“FOIA”) request. The underlying FOIA request was sent to the DOL’s Office of Federal Contract Compliance Programs (“OFCCP”) in 2022 seeking consolidated EEO-1 reports for all federal contractors filed between 2016 and 2020. DOL disclosed the EEO-1 report of non-objecting contractors but withheld from disclosure 16,755 EEO reports from 4,141 objection contractors. In its Opinion, the Ninth Circuit affirmed the District Order’s finding that EEO-1 reports are not exempt from disclosure under FOIA Exemption 4, which protects trade secrets and confidential commercial or financial information. Specifically, the Ninth Circuit found that EEO-1 report data is not “commercial” because workforce-compensation data is not designed to be bought and sold, nor does it reveal basic commercial operations, such as sales statistics, profits and losses, or inventories. The Court held that DOL failed to establish that EEO-1 reports describe an exchange of goods or services or the making of a profit. While the Ninth Circuit Order is limited to compelling the release of 2016-2020 reports in response to CIR’s FOIA request, DOL also relied on Exemption 4 to withhold the production of federal contractors’ 2021 consolidated EEO-1 reports in response to FOIA requests issued by the University of Utah and As You Sow. DOL has not issued a comment, and it is not known at this time whether the DOL will appeal this determination. FortneyScott will continue to monitor this and related cases.
July 31, 2025
On July 23, 2025, the Trump Administration issued America’s AI Action Plan that provides policy recommendations to achieve the goal of global AI dominance by the United States. Of particular interest to employers, the Action Plan includes recommendations to empower American workers in the age of AI, for training a skilled workforce for AI infrastructure and jobs, and for developing new criteria to address misinformation, including specifically identifying DEI. Join FortneyScott for a discussion on the employment-law related key provisions of America’s AI Action Plan and how they may impact the workforce.
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August 21, 2025
We are pleased to announce that FortneyScott attorney David Fortney has been recognized as one of The Best Lawyers in America for 2026, in recognition of outstanding achievement and contributions to the field of Labor and Employment law. This marks a continuation of his recognition in The Best Lawyers in America since 2008, reflecting a sustained commitment to excellence, innovation, and leadership. It underscores the impact of his work within the professional community. We extend our congratulations on this well-deserved recognition.
August 18, 2025
The U.S. Department of Justice (DOJ), Civil Division is sending Civil Investigative Demands (CIDs) to federal contractors seeking information on their DEI practices, under its authority to investigate False Claims Act (FCA) claims. Flowing from President Trump’s Executive Order 14173, which seeks to limit DEI efforts, the DOJ recently launched the Civil Rights Fraud Initiative, which utilizes the FCA to investigate and pursue claims against recipients of federal funds (including federal contractors) that their DEI practices violate federal civil rights laws. The focus of these investigations will likely be: Discriminatory preferences/goals: DEI programs that assign benefits or burdens based on race, ethnicity, or national origin. Use of proxies to mask discrimination: Practices using criteria like "cultural competence" or "lived experience" as proxies for protected characteristics in hiring or promotion decisions. Segregation in the workplace: Limiting membership in affinity groups or separating employees by protected characteristics during training. Discriminatory training programs: DEI training that promotes stereotypes, excludes individuals based on protected characteristics, or creates a hostile environment. Failure to protect against antisemitism: Institutions accepting federal funds that do not adequately address antisemitism or other civil rights violations. Organizations found to be in violation of the FCA can face significant penalties, including treble damages (three times the amount of damages incurred by the government), civil penalties for each false claim, and reputational harm. As a result, all federal contractors and grant recipients should be on high alert for any communication from DOJ and should immediately notify internal counsel if any such communication is received. Please contact your FortneyScott attorney or email us at info@fortneyscott.com for additional information on how to be prepared and to respond to these DOJ investigations and other best practices recommendations.
August 18, 2025
As the Trump Administration reshapes the U.S. Department of Labor (DOL), employers and federal contractors face significant shifts in agency leadership, budget priorities, enforcement programs, and regulatory strategies. Join FortneyScott attorneys for an in-depth webinar covering what these changes may mean for your organization. Key Topics to be Covered Include: New Leadership: Review of confirmed and pending DOL appointees, including Secretary Chavez-DeRemer and Deputy Secretary Keith Sonderling. Compliance & Self-Audit Programs: Expansion of opinion letter guidance and voluntary audit initiatives across W&H, VETS, OSHA, EBSA, MSHA, and OLMS. Aggressive Deregulatory Agenda: Efforts to revoke EO 11246 regulations, registered apprenticeship affirmative action requirements, and legacy EBSA guidance. Regulatory Revisions & Enforcement: Reforms to Section 503, VEVRAA, tip-credit rules, and child labor standards — including new penalty frameworks. Status of Biden-Era Rules: Updates on independent contractor, overtime, minimum wage, and PLA-related regulations. Proposed FY2026 Budget: 35% overall reduction, including workforce downsizing and potential elimination of OFCCP, Job Corp, and the Women’s Bureau. Strategic Considerations: How the return of the PAID program and potential OFCCP self-audit options may affect employer risk exposure.
August 1, 2025
As the Trump Administration reshapes the U.S. Department of Labor (DOL), employers and federal contractors face significant shifts in agency leadership, budget priorities, enforcement programs, and regulatory strategies. Join FortneyScott attorneys on Thursday, August 14th at noon EDT for an in-depth webinar covering what these changes may mean for your organization. CLICK HERE to register. Key Topics to be Covered Include: New Leadership: Review of confirmed and pending DOL appointees, including Secretary Chavez-DeRemer and Deputy Secretary Keith Sonderling. Compliance & Self-Audit Programs: Expansion of opinion letter guidance and voluntary audit initiatives across W&H, VETS, OSHA, EBSA, MSHA, and OLMS. Aggressive Deregulatory Agenda: Efforts to revoke EO 11246 regulations, registered apprenticeship affirmative action requirements, and legacy EBSA guidance. Regulatory Revisions & Enforcement: Reforms to Section 503, VEVRAA, tip-credit rules, and child labor standards — including new penalty frameworks. Status of Biden-Era Rules: Updates on independent contractor, overtime, minimum wage, and PLA-related regulations. Proposed FY2026 Budget: 35% overall reduction, including workforce downsizing and potential elimination of OFCCP, Job Corp, and the Women’s Bureau. Strategic Considerations: How the return of the PAID program and potential OFCCP self-audit options may affect employer risk exposure. Who Should Attend: Compliance professionals, in-house counsel, HR and inclusion leaders, and anyone with responsibility for compliance with labor and employment laws.
July 31, 2025
On July 30, 2025, the U.S. Court of Appeals for the Ninth Circuit in a panel decision affirmed the District Court’s Order in Center for Investigative Reporting v. DOL compelling the DOL to disclose federal contractors’ EEO-1 reports in response to a Freedom of Information Act (“FOIA”) request. The underlying FOIA request was sent to the DOL’s Office of Federal Contract Compliance Programs (“OFCCP”) in 2022 seeking consolidated EEO-1 reports for all federal contractors filed between 2016 and 2020. DOL disclosed the EEO-1 report of non-objecting contractors but withheld from disclosure 16,755 EEO reports from 4,141 objection contractors. In its Opinion, the Ninth Circuit affirmed the District Order’s finding that EEO-1 reports are not exempt from disclosure under FOIA Exemption 4, which protects trade secrets and confidential commercial or financial information. Specifically, the Ninth Circuit found that EEO-1 report data is not “commercial” because workforce-compensation data is not designed to be bought and sold, nor does it reveal basic commercial operations, such as sales statistics, profits and losses, or inventories. The Court held that DOL failed to establish that EEO-1 reports describe an exchange of goods or services or the making of a profit. While the Ninth Circuit Order is limited to compelling the release of 2016-2020 reports in response to CIR’s FOIA request, DOL also relied on Exemption 4 to withhold the production of federal contractors’ 2021 consolidated EEO-1 reports in response to FOIA requests issued by the University of Utah and As You Sow. DOL has not issued a comment, and it is not known at this time whether the DOL will appeal this determination. FortneyScott will continue to monitor this and related cases.
July 31, 2025
On July 23, 2025, the Trump Administration issued America’s AI Action Plan that provides policy recommendations to achieve the goal of global AI dominance by the United States. Of particular interest to employers, the Action Plan includes recommendations to empower American workers in the age of AI, for training a skilled workforce for AI infrastructure and jobs, and for developing new criteria to address misinformation, including specifically identifying DEI. Join FortneyScott for a discussion on the employment-law related key provisions of America’s AI Action Plan and how they may impact the workforce.
July 24, 2025
On July 23, 2025, the Trump Administration issued America’s AI Action Plan that provides policy recommendations to achieve the goal of global AI dominance by the United States. Of particular interest to employers, the Action Plan includes recommendations to empower American workers in the age of AI, for training a skilled workforce for AI infrastructure and jobs, and for developing new criteria to address misinformation, including specifically identifying DEI. Join FortneyScott lawyers on Thursday, July 31, 2025, at 12:00 PM ET for a discussion of the employment-law related key provisions of America’s AI Action Plan and how they may impact the workforce. Please click here to register.
July 24, 2025
The U.S. Department of Labor (DOL) today announced several programs designed to help employers, as well as unions and pension plans, voluntarily assess and improve their compliance with federal labor laws. “Self-audits are one of the most effective ways to build a culture of compliance and trust,” said Deputy Secretary of Labor Keith Sonderling. “These programs are designed to give employers … the tools they need to correct potential violations proactively.” Of particular interest for employer compliance, the self-audit programs include: minimum wage and overtime under the Fair Labor Standards Act (FLSA) and benefits under the Family and Medical Leave Act (FMLA) (Payroll Audit Independent Determination (PAID)) ; protected veterans’ rights under the Uniformed Services Employment and Reemployment Rights Act (USERRA) (SALUTE - Support and Assistance for Leaders in USERRA Training and Employment) ; and, safety and health programs (Voluntary Protection Programs) . For employers dealing with Wage & Hour issues, the Payroll Audit Independent Determination (PAID) established in the prior Trump Administration for resolution of FLSA and FMLA compliance matters has been reinstituted. By using the PAID program, the audit results that are approved by DOL can provide significant protection against collective and class overtime claims for employers. FortneyScott has extensive experience in advising clients on self-audits that are overseen by DOL. Please contact your FortneyScott attorney for more information about these new compliance opportunities.
July 23, 2025
The Trump Administration announced an ambitious Artificial Intelligence Action Plan that provides policy recommendations to achieve the goal of global AI dominance by the United States. Of particular interest to employers, the Action Plan includes recommendations to empower American workers in the age of AI, for training a skilled workforce for AI infrastructure, jobs, and developing new criteria to address misinformation, including specifically identifying DEI. Overview of the Action Plan . As anticipated by Executive Order 14179 , Removing Barriers to American Leadership in Artificial Intelligence , the White House issued Winning the Race: America’s AI Action Plan (the “Action Plan”) on July 23, 2025. The Action Plan sets forth the Administration’s policy recommendations based on the following three pillars: (1) acceleration of AI innovation; (2) building American AI infrastructure, and (3) leading in international AI diplomacy and security. Further, the Action Plan contemplates initiatives led by various federal agencies, including the Department of Labor (“DOL”), to promote the advancement and adoption of AI throughout all facets of American life. Key initiatives of the Action Plan include significant deregulatory efforts aimed at promoting AI development: Consistent with Executive Order 14192 , Unleashing Prosperity Through Deregulation , the Office of Management and Budget (“OMB”) will work with all federal agencies to review, rescind, and/or amend regulatory and sub-regulatory hinderances to AI development and deployment; OMB will also work with federal agencies to limit discretionary AI-related federal funding to states with AI regulatory requirements that the administration considers onerous; and The National Institute of Standards and Technology (“NIST”) will revise its “AI Risk Management Framework” to eliminate references to misinformation, DEI, and climate change. The Key Workforce Provisions. The Action Plan tasks the DOL with leading, either on its own or in conjunction with other agencies, to empower American workers in the age of AI, including: Workforce funding streams should flow towards training, apprenticeships, and other skill-based initiatives that prioritize AI skill development; The Bureau of Labor Statistics should study AI’s impact on the labor market to incorporate the findings into DOL’s forthcoming “AI Workforce Research Hub”; and Exposure programs, pre-apprenticeships, training programs, and Registered Apprenticeships should be created and/or expanded for occupations related to the building, operation, and maintenance of AI infrastructure. The Action Plan also includes specific recommendations to DOL for training a skilled workforce for AI infrastructure work. DOL will: identify high-priority occupations; partner with state and local government to support the creation of industry-driven training programs; expand early career exposure and pre-apprenticeship programs; and, expand the use of Registered Apprenticeship in occupations that are critical to AI infrastructure. Employers Next Steps. As federal agencies accelerate and focus on AI adoption, private sector organizations need to assess how their workforce strategies align with emerging national priorities. Employers need to identify opportunities to ensure their workforces are trained and proficient with AI-related skills and technology. Companies may also want to explore paths to participate in or benefit from federal programs and funding aimed at supporting AI innovation, infrastructure, and international leadership. Additionally employers need to be cognizant of a likely tension between the federal deregulatory approach and a growing number of state law and regulatory requirements addressing the use of AI in the workplace. FortneyScott invites clients and friends for a complimentary webinar discussing these developments on July 31, 2025, at 12:00 PM ET. Please click here to register. If you have any questions, please reach out to your FortneyScott attorney.
July 10, 2025
On Friday, June 27, 2025, OFCCP Director Catherine Eschbach issued a letter inviting federal contractors to voluntarily submit information to OFCCP detailing contractors’ efforts to “wind down compliance with the EO 11246 regulatory scheme and ensure full compliance with the Nation’s non-discrimination laws.” Join David Fortney, Liz Bradley and Nita Beecher as they analyze Director Eschbach’s letter and provide practical insights to assist federal contractors in deciding whether or how to respond to this request.
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