The acting secretary of labor issued a new directive aimed at federal contractors last week that could put them in an impossible situation as they try to navigate new DE&I rules, one lawyer told HR Brew.

In an effort to comply with a Trump executive order aimed at ending DE&I initiatives, Vincent Micone’s Jan. 24 directive immediately ended all “investigative and enforcement activity” that was previously required as part of the Equal Employment Opportunity (EEO) order 11246. Regulations enacted under the order and pending cases were thrown out. It also essentially nullified the Office of Federal Contract Compliance Programs (OFCCP), which ensured federal contractors’ compliance with the law.

Background on the EEO. The order was signed by President Lyndon B. Johnson in 1965, and said that federal contractors could not discriminate against applicants or employees based on their race, gender, or religious affiliation, or inquiries about compensation. Federal contractors were also required to file compliance reports detailing employment statistics, policies, and hiring programs. Employers that did not comply risked losing their federal contracts. The secretary of labor was required to notify the EEOC in the event of a potential violation of the Civil Rights Act of 1964.

Implications of the directive. Nisha Verma, a partner in the labor and employment practice at the law firm Dorsey & Whitney, told HR Brew that Trump’s executive order and the DOL’s directive puts HR leaders at federal contractors in a difficult position. Any DE&I initiatives contractors were pursuing two weeks ago to comply with the previous law could now be in violation of new regulations.

Keep reading here.—KP

What skills are needed in the age of the AI-powered economy? According to a new report by freelance platform Upwork, there’s a strong dual need for deep technical skills with specific AI applications, as well as those “learning-how-to-learn” skills like coaching and developing.

Upwork’s analysis of work on the platform showcases how employers and businesses are turning to freelance workers to fill urgent skills gaps inside their organizations.

“What’s happening is the majority of workers today [do] not have future-proof skill sets as we start to look three to five years out,” said Kelly Monahan, managing director of Upwork's Research Institute.

As generative AI matures and organizations rapidly adopt and develop applications for the technology, specialization in the technical skills space will be critical, Monahan said. Companies are looking for skills that address specific needs along the AI tech’s entire lifecycle.

Keep reading here.—AD

Half of the Big Four accounting firms’ British outposts aren’t bringing on enough women partners to meet their 2025 goals in the UK, according to the Financial Times, while the other two are falling short on their global goals.

EY, where women held 28% of equity partner roles last year, isn’t going to meet its goal of increasing that to 40% in 2025, while PwC UK reported 27% of women partners compared to its 30% goal for this year.

“KPMG and Deloitte have already met” their UK goals for women partners, the FT reported, although their percentages aren’t much better than at the other two. Women held 29% of equity partnerships at KPMG in 2023, surpassing its 2022 goal of 25%. The UK leader for women partners is Deloitte: Last year, it reported that 30% of its partners were women, “ahead of its 2025 deadline to hit that figure.”

Defending their pace, the firms have pointed to “the need to build a pipeline of candidates with sufficient experience to be promoted,” the FT reported.

Keep reading on CFO Brew.—GD