NC Governor’s Executive Order Affects Contractors

Last week, Governor Roy Cooper signed an executive order that prohibits discrimination in government agencies and government contracts saying he “wants to make the state a welcoming place to all.”

The order bans discrimination in his administration on the grounds of race, color, ethnicity, sexual orientation, gender identity or expression in employment. The order also requires those doing business with the state to do the same.
​
Governor Cooper’s order reaffirms a previous order issued by former Governor Pat McCrory that his cabinet agencies will not discriminate based on sexual orientation or gender identity. However, it also states that no department or agency under his supervision will adopt a policy that prohibits or deters someone using a restroom that corresponds with their gender identity. This section related to restrooms does not apply to private business, cities or towns or schools.

Of interest to contractors is Section III. B of the order that seeks to impose obligations on prime contractors not to discriminate based upon Prohibited Grounds defined as “Activities and identities protected under existing federal and state law, including but not limited to race, color, ethnicity, national origin, age, disability, sex, pregnancy, religion, National Guard or veteran status, sexual orientation, gender identity or expression”. In the Order the Department of Administration is directed to issue guidance that would identify under what circumstances:

Contractors will have to attest that they will not discriminate harass or retaliate based upon Prohibited Grounds prior to providing goods and services to the State;
Contractors would be required to have in place internal policies prohibiting discrimination, harassment and retaliation and ensuring subcontractors have similar policies in place and;
DOA may set forth consequences for contractors and subcontractors who discriminate, harass, or retaliate based upon Prohibited Grounds up to and including contract termination and exclusion from consideration for future state contracts and subcontracts.

CAGC is currently reviewing the EO and plans to meet with Department of Administration officials to seek clarification and guidance and, we will also offer our own feedback on how this affects our membership.