Indiana Amends State Contract Nondiscrimination Clause To Target Unlawful DEI

September 16, 2025

What's New

Indiana’s Attorney General announced that the state updated its nondiscrimination clause, which is included in all state contracts, to address illegal DEI practices. The revisions require contractors with the state to affirm 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. Similar to the federal False Claims Act, Indiana’s law also allows whistleblowers to bring an action on behalf of the state.

The revised nondiscrimination clause became effective July 1, 2025, and all contracts initiated or amended on or after the effective date must include the updated language.

What It Means

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 concerned about illegal DEI may follow suit.

What You Should Do

Organizations holding contracts with the state of Indiana should alert their legal and procurement teams. Companies should continue to evaluate their recruitment, hiring, and employment practices to ensure they are not engaging in discriminatory practices that might be considered illegal DEI. For more information on staying compliant with federal and state anti-discrimination laws, register for CWC’s 2025 Workplace Compliance Conference.

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