Does that apply to Texas employees of Texas companies that fall under EO 14042?!?
Most federal contractors are going to error on the side of what the federal government tells them to do.
The only way you are actually going to stop that is if you enact immediate and personal consequences and the legislature will probably need to do that.
Probably the biggest consequence is that it gives federal contractor employees a place to go -- any company that is not a federal contractor. Meaning that these contractors have to face losing a large number of their employees and will have much more trouble hiring.
It pretty much gives them every incentive to rubber stamp every possible exemption they can.