Indiana updated its nondiscrimination clause, which is included in all state contracts, to require state contractors to affirm that they do not operate unlawful DEI programs. Under the revisions, state contractors must affirm that they do 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.” Contractors that breach this requirement can be held liable under Indiana’s False Claims Act, which allows whistleblowers to file a lawsuit on behalf of the state. The revised nondiscrimination clause took effect July 1, so all contracts initiated or amended on or after that date must include the updated language.
Indiana’s updates to the nondiscrimination clause mirror Executive Order 14173’s requirement that federal contractors certify that they do not maintain unlawful DEI programs. While Indiana appears to be the first state to address unlawful DEI in a state contract nondiscrimination clause, other states may follow suit.
For information on staying compliant with federal and state anti-discrimination laws, register for CWC’s 2025 Workplace Compliance Conference. Members of the Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, can read more here.