President Trump issued an executive order concerning diversity, equity, and inclusion discrimination by federal contractors. The Department of Labor published proposed rules concerning the inclusion of alternative investment investments in 401(k) plans and increasing the prevailing wages paid to H-1B and other visa recipients. James Murphy has been designated as the chairman of the National Labor Relations Board (NLRB).
Federal Contractor DEI Executive Order Issued – President Trump issued an
executive order,
“Addressing DEI Discrimination by Federal Contractors.” The executive order states that it is the policy to prevent racial discrimination in contracting. Racially discriminatory diversity, equity, and inclusion (DEI) activities are defined as “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.”
Federal agencies have 30 days to ensure that contractors and subcontractors certify that they will not engage in any racially discriminatory DEI activities, will provide all requested information and reports to assure compliance, and will report any violations of the executive order by subcontractors. Any violation may result in the cancellation, termination, or suspension of the contract, and the barring of the contractor or subcontractor from future government contracts.
On January 20, 2025, Trump issued
executive order 14151, “Ending Radical and Wasteful Government DEI Programs and Preferencing” that directed federal agencies to review and revise existing federal employment practices, union contracts, and training policies to eliminate consideration of DEI “factors, goals, policies, mandates, or requirements.” The executive order required federal agencies to terminate all DEI offices and positions, all equity plans, actions, initiatives, grants, contracts, and all DEI performance requirements for employees, contractors, or grantees.
Proposed Regulation Authorizes Alternative Investments in Retirement Accounts – The Employee Benefits Security Administration of the Department of Labor (DOL) issued a proposed
rule, “Fiduciary Duties in Selecting Designated Investment Alternatives.” Comments on the proposed rule are due by June 1, 2026. The goal of the proposed regulation is to reduce regulatory burdens and the risk of litigation under the Employee Retirement Security Act of 1974 (ERISA) that may interfere with “the ability of American workers to achieve, through their retirement accounts, the competitive returns and asset diversification necessary to secure a dignified and comfortable retirement.”
The proposed regulation would clarify that fiduciaries have the discretion to determine when alternative investments should be included as retirement account options. Secretary of Labor Lori Chavez-DeRemer stated, “This proposed rule will show how plans can consider products that better reflect the investment landscape as it exists today.”
The proposed regulation is in follow-up to executive order 14330, “Democratizing Access to Alternative Assets for 401(k) Investors” signed by President Trump on August 12, 2025, that calls for expanding investment opportunities in retirement plans. The executive order set forth alternative investment options that should be offered in 401(k) plans that include private market investments, real estate interests, digital assets, commodities, infrastructure products, and lifetime income investment strategies.
DOL Proposes Increase to H-1B Wage Rates – The Employment and Training Administration of the Department of Labor (DOL) proposed a
rule, “Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States.” Comments on the proposed rule are due by May 26, 2026. The proposed rule would update the percentages derived from the Bureau of Labor Statistics’ Occupational Employment and Wage Statistics survey to align wages paid under the H-1B and other programs with those paid to American workers in similar occupations. Secretary of Labor Lori Chavez-DeRemer stated, “This proposed rule will help ensure that employers pay foreign workers wages that reflect the real market value of their labor, in addition to protecting the wages and job opportunities of American workers.”
The law requires employers who want to hire temporary foreign workers through the H-1B and other programs to pay them the higher of the prevailing wage for the area of intended employment or the actual wage rate paid to similarly qualified American workers in the area of intended employment. According to DOL, the changes made by the proposed rule would “improve the correlation between wages paid to foreign workers and those paid to American workers with similar skills and qualifications, reduce the economic incentives to underpay foreign workers and undermine the American workforce, and promote fair competition in the American labor market.”
The DOL believes the existing prevailing wage levels have been set below the market rates that are paid to many American workers, especially for entry-level and recent college graduates in STEM fields. The wage survey uses a four-tier structure designed to recognize increasing experience levels with level 1 for entry, level 2 for qualified, level 3 for experienced, and level 4 for fully competent. The current percentile levels of the prevailing wage from the Occupational Employment and Wage Statistics survey that must be paid under the proposed rule would increase as follows:
Level 1 – from 17th percentile to the 34th percentile
Level 2 – from 34th percentile to the 52nd percentile
Level 3 – from the 50th percentile to the 70th percentile
Level 4 – from the 67th percentile to the 88th percentile
The proposed rule would apply only prospectively to applications pending on the effective date of the rule.
James Murphy Named NLRB Chairman – President Trump designated National Labor Relations Board (NLRB) member James R. Murphy as the NLRB chairman. He was sworn in as an NLRB member on January 7, 2026, for a term expiring on December 16, 2027. He returned to the NLRB where he previously worked for 47 years. He stated that he was looking forward to working with “all NLRB employees to protect and advance the rights of American workers.”
Neil Reichenberg is the former executive director of the International Public Management Association for Human Resources. He is an attorney, a frequent writer and speaker on public policy and human resource issues, and an adjunct faculty member at George Mason University. For questions or additional information, contact Reichenberg at [email protected].
