Remind me, what's an executive order?
Executive orders are instructions ordered by the president of the United States that direct federal government companies and authorities to take particular actions. While they are not laws, they have the force of law and impact how existing laws are executed or imposed.
Executive orders impact the companies of the executive branch and for that reason do not need the approval of Congress. They should be within the president's constitutional authority and might be challenged in court if deemed unconstitutional.
Executive orders might be rescinded, overturned by future presidents, or challenged in court, and enforcement top priorities can change throughout any administration.
The brand-new administration's actions have significant impacts beyond executive orders. For more on mitigating threat, international services can seize new opportunities by remaining 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 numerous prior executive orders and memoranda, including Executive Order 11246 (EO 11246) checked in 1965 by President Lyndon B. Johnson.
EO 11246 required every government agreement to consist of a declaration that the professional will not victimize any staff member or applicant for work based on race, creed, color, or nationwide origin.
Despite President Trump's brand-new executive order, the underlying federal anti-discrimination law stays unchanged for private-sector staff members.
However, the executive order signals that there might be changing enforcement top priorities in the brand-new administration. The order directs all federal agencies to "combat 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 "suing corporations who use 'woke' policies to victimize their workers."
In addition to withdrawing EO 11246, the Jan. 21 executive order advises each company of the federal government to determine "as much as 9 potential civic compliance investigations" of economic sector entities within 120 days of the order - by May 21, 2025.
The personal sector entities based on these examinations include openly traded corporations, big nonprofits - including bar associations - big structures, and universities whose endowments go beyond US$ 1 billion.
Organizations that may be targeted should ask:
- What is my company's danger tolerance?
- How will employees react to the company's actions?
- How will clients and stakeholders respond?
What in-house counsel must think of:
Assess any federal contracts and grants
- Determine if they include any terms or conditions related to DEI that may contravene existing laws and guidelines
Review your organization's existing DEI policies to understand your danger
- Prepare for increased examination and potential civil compliance investigations
Document, document, document
- Hiring and recruitment processes
- Performance evaluations and promotion decisions
- Training materials and presence records
- Any modifications to DEI policies
Implications for employment federal professionals
Among other procedures, the Jan. 21 Executive Order needs the heads of federal companies to consist of particular terms in every agreement or grant award:
- "A term requiring the contractual counterparty or grant recipient to concur that its compliance in all respects with all appropriate Federal anti-discrimination laws is material to the federal government's payment choices for functions of area 3729( b)( 4) of title 31, United States Code"
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2025 United States Executive Orders, DEI, and Employment: how In house Lawyers can Assist Business
Adalberto Goodwin edited this page 1 month ago