Ohio and Indiana Change EEO Requirements for State Contractors

Ohio and Indiana Change EEO Requirements

The states of Ohio and Indiana have made changes to the equal employment opportunity (EEO)/affirmative action requirements for employers contracting with these states. The Ohio changes will be effective on September 30, 2025, while the Indiana changes came into effect on July 1, 2025. These changes are part of sweeping changes to EEO and affirmative action laws occurring at various levels of government through the United States.

Ohio Ends Affirmative Action Requirements

Prior to September 30, 2025, the state of Ohio required employers contracting with the state to meet certain affirmative action obligations. Section 9.47 of the Ohio Revised Code required state construction contractors to get a “certificate of compliance with affirmative action programs.” Section 125.111 of the Ohio Revised Code stated that state non-construction contractors “shall have a written affirmative action program.” Non-construction contractors were also required to annually file a description of their affirmative action program and a progress report on its implementation. Ohio contractors were asked to use an online portal to submit information to the state.

On June 30, 2025, Ohio Governor Mike DeWine signed an appropriations bill for Ohio’s 2025-26 fiscal year. This bill included a number of statutory changes effective on September 30, 2025. Among these changes was the repeal of affirmative action provisions for state contractors.

Indiana Requires State Contractors to Examine DEI Programs

Indiana Attorney General Todd Rokita’s office issued a press release on August 21, 2025, regarding diversity, equity, and inclusions (DEI) programs. The press release stated that employers contracting with the state must "certify that they do not engage in DEI practices that treat people differently on the basis of race and sex when recruiting, hiring, promoting and conducting other employment activities.” The press release also stated that starting July 1, 2025, state contracts would include a new clause about this certification.

The press release provided a link to a series of Frequently Asked Questions (FAQs) about the new contract clause. The language of the new contract clause is not specifically included in the FAQs. The new clause as found in publicly available state contracts reads as follows:

Contractor covenants that it does not and shall not operate any programs or engage in any practices promoting Diversity, Equity, and Inclusion (DEI), or other similar goals, that violate Indiana or Federal Civil Rights Laws by treating a person differently on the basis of race or sex, such as by considering race or sex when making recruitment, hiring, disciplinary, promotion, or employment decisions; requiring employees to participate in training or educational programs that employ racial or sex stereotypes; or attempting to achieve racial or sex balancing in the Contractor's workforce. The Parties agree that a breach of this subparagraph is a material breach of this Contract, including for purposes of Indiana Code §5-11-5.5-2, but nothing in this paragraph shall be construed to imply or establish an employment relationship between the State and any applicant or employee of the Contractor or any subcontractor.

Indiana Governor Michael Braun issued Executive Order 25-14 on January 14, 2025, requiring the elimination of all DEI programs through Indiana state government. The update to state contracts announced by the attorney general is part of this effort.

Changing Regulatory Landscape in State Contracting

The actions by Ohio and Indiana are part of a changing regulatory landscape that affects employers contracting with the states. For example, the state of Minnesota has made significant changes to its affirmative action requirements to avoid conflicts with federal law. We expect that some states will follow the path Ohio and Indiana has taken and limit affirmative action and DEI programs, while others will take the path Minnesota has taken to modify and enhance EEO requirements for state contractors.

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