Remind me, what's an executive order?
Executive orders are directives purchased by the president of the United States that direct government companies and authorities to take specific actions. While they are not laws, they have the force of law and effect how existing laws are executed or implemented.
Executive orders impact the firms of the executive branch and for that reason do not require the approval of Congress. They must be within the president's constitutional authority and may be challenged in court if considered unconstitutional.
Executive orders might be rescinded, overturned by future presidents, or challenged in court, and enforcement priorities can alter throughout any administration.
The new administration's actions have far-reaching impacts beyond executive orders. For more on mitigating risk, worldwide services can seize new chances by remaining nimble.
Implications of the executive orders for DEI initiatives and work in private-sector companies
On Jan. 21, President Trump issued "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 needed every federal government agreement to include a statement that the professional will not victimize any worker or candidate for employment based upon 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 may be changing enforcement top priorities in the new administration. The order directs all federal companies to "fight unlawful private-sector DEI choices, 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 discriminate versus their workers."
In addition to revoking EO 11246, the Jan. 21 executive order advises each agency of the federal government to determine "up to nine potential civic compliance investigations" of private sector entities within 120 days of the order - by May 21, 2025.
The private sector entities subject to these examinations consist of openly traded corporations, large nonprofits - including bar associations - big foundations, and universities whose endowments surpass US$ 1 billion.
Organizations that may be targeted should ask:
- What is my organization's risk tolerance?
- How will workers react to the business's actions?
- How will consumers and stakeholders respond?
What in-house counsel ought to consider:
Assess any federal contracts and grants
- Determine if they include any terms or conditions connected to DEI that may clash with present laws and regulations
Review your company's existing DEI policies to comprehend your risk
- Prepare for increased analysis and prospective civil compliance examinations
Document, file, file
- Hiring and recruitment procedures
- Performance assessments and promo decisions
- Training products and employment attendance records
- Any changes to DEI policies
Implications for federal professionals
Among other procedures, the Jan. 21 Executive Order requires the heads of to include specific terms in every agreement or grant award:
- "A term needing the legal counterparty or grant recipient to concur that its compliance in all aspects with all applicable Federal anti-discrimination laws is material to the government's payment choices for purposes of section 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
Caryn Caballero edited this page 3 months ago