elevatepalestine

1 2025 United States Executive Orders, DEI, and Employment: how In house Lawyers can Assist the Business

Remind me, what's an executive order?

Executive orders are regulations purchased by the president of the United States that agencies and authorities to take particular actions. While they are not laws, they have the force of law and effect how existing laws are implemented or enforced.

Executive orders impact the agencies of the executive branch and for that reason do not need the approval of Congress. They need to be within the president's constitutional authority and may be challenged in court if deemed unconstitutional.

Executive orders may be rescinded, overturned by future presidents, or challenged in court, and enforcement top priorities can alter throughout any administration.

The new administration's actions have far-reaching effects beyond executive orders. For more on mitigating risk, international companies can take brand-new opportunities by staying active.

Implications of the executive orders for DEI efforts and employment in private-sector organizations

On Jan. 21, President Trump released "Ending Illegal Discrimination and Restoring Merit-Based Opportunity," which reverses different previous executive orders and memoranda, including Executive Order 11246 (EO 11246) signed in 1965 by President Lyndon B. Johnson.

EO 11246 needed every federal government agreement to consist of a statement that the contractor will not discriminate versus any worker or applicant for work based upon race, creed, color, or nationwide origin.

Despite President Trump's new executive order, the underlying federal anti-discrimination law remains unchanged for private-sector workers.

However, the executive order signals that there might be altering enforcement concerns in the brand-new administration. The order directs all federal companies to "fight illegal private-sector DEI preferences, mandates, policies, programs, and activities."

In December 2024, President-elect Trump tapped Harmeet K. Dhillon to lead the Justice Department's civil rights office, pointing to his record of "taking legal action against corporations who use 'woke' policies to discriminate against their employees."

In addition to withdrawing EO 11246, the Jan. 21 executive order instructs each company of the federal government to determine "approximately 9 prospective civic compliance examinations" of economic sector entities within 120 days of the order - by May 21, 2025.

The private sector entities subject to these investigations consist of openly traded corporations, big nonprofits - consisting of bar associations - big structures, and universities whose endowments surpass US$ 1 billion.

Organizations that may be targeted should ask:

- What is my organization's danger tolerance?
- How will staff members respond to the company's actions?
- How will clients and stakeholders react?
What internal counsel needs to think of:

Assess any federal agreements and grants

- Determine if they include any terms or conditions connected to DEI that might clash with existing laws and regulations
Review your organization's existing DEI policies to understand your risk

- Get ready for increased scrutiny and possible civil compliance investigations
Document, file, file

- Hiring and recruitment procedures
- Performance assessments and promotion decisions
- Training materials and attendance records
- Any changes to DEI policies
Implications for federal contractors

To name a few measures, the Jan. 21 Executive Order needs the heads of federal firms to include specific terms in every agreement or grant award:

- "A term needing the contractual counterparty or grant recipient to concur that its compliance in all respects with all applicable Federal anti-discrimination laws is product to the government's payment choices for purposes of section 3729( b)( 4) of title 31, United States Code"