The Department of Labor recently rolled out a proposed rule seeking to deliver on its promise to allow more alternative assets into 401(k) plans. The rule, issued on Mar. 31, details factors fiduciaries should consider when selecting investments such as private equity or cryptocurrency for inclusion in a defined contribution plan.

While the Biden administration cautioned retirement plan sponsors against including such investment options in their 401(k) plans, the Trump administration has taken a more permissive view of alternatives. This proposed rule builds on an executive order issued by the White House last year seeking to democratize “access to alternative assets for 401(k) investors.”

The proposed DOL regulation is intended to lessen legal risk tied to such alternative investments, but the threat of lawsuits won’t go away entirely if it’s approved, sources told HR Brew.

For more on what HR should consider about the proposed DOL regulation, keep reading here.—CV

On Mar. 26, President Trump issued an executive order aimed at federal contractors with DEI initiatives. Unlike previous orders that were vague and failed to clearly define “DEI-related discrimination,” this new order provides slightly more clarity around potential violations and consequences.

The latest. The executive order states that within 30 days of the order, government contractors and subcontractors must sign a clause agreeing not to engage in “racially discriminatory DEI activities,” which it finally, if not broadly, defined as “disparate treatment based on race or ethnicity” when hiring, promoting, parsing out internal programs, and allocating business resources. Federal contractors must also provide the government with access to books and records that could pertain to the order. Major private companies, including Booz Allen, General Dynamics, and Boeing, have millions of dollars in federal contracts

How employers may respond. Federal contractors should examine their workforce practices to make sure race and ethnicity are not part of decision-making processes, according to Kelly. “I also think it would be very important to be monitoring on a regular basis, your practices,” he said.

For more on what HR needs to know about Trump’s latest DEI executive order, keep reading here.—KP

Here’s this week’s edition of our Business of Benefits series, where we spotlight benefits that are driving value for HR leaders, digging into their design and ROI.

If you’re interested in talking about a workplace benefit you love for an upcoming edition, click here to get in touch. You can also reach out directly to HR Brew’s total rewards reporter, Courtney Vinopal: [email protected]

Since 2018, herbs and spices manufacturer Frontier Co-op has used second-chance hiring practices when considering job applicants. This means that the Norway, Iowa-based employer doesn’t ask applicants about prior felony convictions until an offer is made. A criminal history doesn’t disqualify someone from working for Frontier, so long as the candidate hasn’t been convicted of a violent crime or sex offense.

When Frontier employs individuals through second-chance hiring, their history with the criminal justice system is only known to a few people in HR, Megan Schulte, the company’s VP of HR, said. “We want them to be viewed just like any other person would be viewed, and truly get a fresh start,” she told us.

Schulte explained how Frontier adopted second-chance hiring, which is part of a Breaking Down Barriers to Employment initiative that also provides benefits including transportation, childcare, and apprenticeship opportunities.

For more on the business case for Frontier Co-op’s second-chance hiring practices, keep reading here.—CV