Other Federal Agency Updates
Discussion
EEOC Reports on Fiscal Year 2025 Performance
On April 6, 2026, the U.S. Equal Employment Opportunity Commission (EEOC) announced that in fiscal year 2025, the agency secured $660 million for 17,680 victims of employment discrimination, representing its third-highest recovery in recent history. This included a record-breaking $528 million through pre-litigation enforcement (up 12% from FY2024), $27 million through litigation, and $104.6 million for federal employees and applicants. Notable gains included a 24% increase in conciliation recoveries ($52.5 million) and a roughly 115% jump in monetary benefits from systemic investigations ($55 million). The EEOC also handled higher public demand more efficiently, responding to nearly 270,000 inquiries (up 9%), resolving 90,743 discrimination charges (up 4%), reducing private-sector charge inventory by 4%, and boosting federal sector appellate resolutions by 67% compared to the prior year. This report highlights the EEOC’s active enforcement efforts, which are expected to continue for the current fiscal year.
Additional Guidance Regarding DEI Discrimination by Federal Contractors
Following Executive Order 14398 (EO 14398), issued March 26, 2026, which required federal agencies to implement certain contract requirements for federal contractors and subcontractors within 30 days, the Federal Acquisition Regulatory Council (FAR Council) issued a memorandum on April 17, 2026, providing further guidance. Specifically, the guidance defines “racially discriminatory DEI activities” to mean disparate treatment based on race or ethnicity in the recruitment, employment (e.g., hiring, promotions), contracting (e.g., vendor agreements), program participation, or allocation or deployment of an entity’s resources. It also defined “program participation” and provided the language required to be incorporated into new qualifying federal contracts by April 24, 2026, and existing contracts by July 24, 2026. Employers should note that the EO is currently being challenged in a Maryland federal district court.
DEA Issues Final Order Rescheduling Certain Marijuana Products
Effective April 22, 2026, a Drug Enforcement Administration (DEA) final order moves two categories of marijuana from Schedule I to Schedule III of the Controlled Substances Act (CSA): (1) FDA-approved drug products containing marijuana, marijuana extracts, or naturally derived delta-9-THC, and (2) marijuana (in any form) covered by a qualifying state medical marijuana license. Importantly, the changed scheduling does not impact employers’ ability to maintain a drug-free workplace. However, this may impact potential protections for medical marijuana card holders under disability accommodation laws where there is no use impairment while working. Employers should review medical marijuana accommodation requests with legal counsel for compliance.
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