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

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 particular actions. While they are not laws, they have the force of law and impact how existing laws are implemented or enforced.

Executive orders affect the companies of the executive branch and for that reason do not require the approval of Congress. They should be within the president’s constitutional authority and may be challenged in court if deemed unconstitutional.

Executive orders might be rescinded, reversed by future presidents, or challenged in court, and job enforcement priorities can alter throughout any administration.

The new administration’s actions have significant impacts beyond executive orders. For more on mitigating danger, international businesses can seize new chances by staying nimble.

Implications of the executive orders for DEI initiatives and work in private-sector companies

On Jan. 21, President Trump provided “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” which reverses different prior executive orders and memoranda, consisting of Executive Order 11246 (EO 11246) checked in 1965 by President Lyndon B. Johnson.

EO 11246 needed every federal government contract to consist of a statement that the professional will not victimize any worker or candidate for work based upon race, creed, color, or national origin.

Despite President Trump’s brand-new executive order, the underlying federal anti-discrimination law stays the same for private-sector employees.

However, the executive order signals that there may be altering enforcement priorities in the new administration. The order directs all federal companies to “combat prohibited private-sector DEI preferences, requireds, policies, programs, and activities.”

In December 2024, President-elect Trump tapped Harmeet K. Dhillon to lead the Justice Department’s civil liberties workplace, indicating his record of “taking legal action against corporations who utilize ‘woke’ policies to discriminate versus their workers.”

In addition to withdrawing EO 11246, the Jan. 21 executive order advises each firm of the federal government to recognize “approximately nine possible civic compliance examinations” of economic sector entities within 120 days of the order – by May 21, 2025.

The economic sector entities based on these examinations include openly traded corporations, big nonprofits – including bar associations – large foundations, 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 respond to the business’s actions?

– How will consumers and stakeholders react?

What internal counsel needs to consider:

Assess any federal agreements and grants

– Determine if they include any terms or conditions associated with DEI that might contravene current laws and guidelines

Review your organization’s existing DEI policies to understand your threat

– Get ready for increased analysis and possible civil compliance examinations

Document, file, file

– Hiring and recruitment procedures

– Performance assessments and job promo choices

– Training materials and attendance records

– Any modifications to DEI policies

Implications for federal specialists

Among other measures, the Jan. 21 Executive Order requires the heads of federal firms to consist of specific terms in every contract or grant award:

– “A term needing the contractual counterparty or grant recipient to agree that its compliance in all respects with all applicable Federal anti-discrimination laws is material to the federal government’s payment choices for purposes of area 3729( b)( 4) of title 31, United States Code”; and

– “A term requiring such counterparty or recipient to accredit that it does not operate any programs promoting DEI that violate any suitable Federal anti-discrimination laws.”

Section 3729 of title 31 of the United States Code is an arrangement of the US False Claims Act, a federal law that enforces civil penalties on those who make incorrect claims to the government in order to influence the payment or receipt of cash or home.

The certification requirement carries a possible danger of litigation for federal professionals under the False Claims Act. In-house attorneys at federal professionals therefore have a particular interest in guaranteeing their company’s policies, procedures, practices, interactions and material, job are evaluated. Assess if modifications are needed to reduce the danger of litigation.

Executive orders targeting prohibited immigration

President Trump’s flurry of executive orders consisted of lots of – such as the Jan. 20 executive order “Protecting the American People Against Invasion” – focused on restricting illegal migration and deporting illegal immigrants. The orders call for job enforcement actions by federal firms versus prohibited migration.

In-house lawyers should consider reviewing their organization’s work eligibility verification procedure. They may likewise wish to consider whether the organization is gotten ready for reacting to an I-9 audit or a worksite enforcement action (or raid) by immigration enforcement agencies.

Sectors that might be especially affected consist of farming, hospitality, and other markets such as construction. From 2020-2022, 42 percent of crop farmworkers held no work authorization, according to the US Department of Agriculture. The American Immigration Council estimates that more than one million undocumented immigrants operate in hospitality, representing 7.1 percent of the workforce.

In-house counsel have an important role to play in establishing and making sure consistent application of the Form I-9 and job E-Verify guidelines the federal government utilizes to carry out and implement migration law, shares John W. Mazzeo, AGC, director of I-9 and E-Verify compliance for Vertical Screen, Inc., in a 2024 ACC Docket short article.

Take a look at helpful checklists of factors to consider pertinent for internal lawyers on the topic of I-9 audits and worksite enforcement actions.

If an employer does not work together with a civil administrative warrant provided by US Immigration and Customs Enforcement (ICE), there is a danger that the agency could commence an I-9 audit if they felt an employer was obstructing their need to apprehend a non-citizen worker, or in some cases get a criminal warrant from a judge if actions support it.

Steps internal counsel ought to consider:

– Determine the number of staff members could possibly be impacted

– Review your company’s work eligibility verification process

– Ensure your organization’s process is documented and defensible

– Implement and enforce clear policies

– Monitor legal advancements, consisting of litigation and enforcement assistance

Mitigate danger, stay active, and take brand-new chances

The recent executive orders will considerably affect global companies. Legal departments and internal counsel will require to assist their companies comprehend and adjust to modifications, ensuring compliance or litigating when suitable.

A number of the new administration’s choices will play out over the coming months, consisting of new executive orders and legal challenges. The Docket will continue to keep track of developments. Global internal legal representatives should prepare for rapid developments connected to:

Trade and tariffs. On Feb. 1, President Trump bought the imposition of a 25-percent tariff on imports from Canada and Mexico, and 10-percent additional tariffs on imports from China. The former two were both delayed by a month as the administration takes part in negotiations. Meanwhile, China has actually started its own vindictive measures on US goods. He had actually previously revealed his intent to enforce 25-percent escalating tariffs on Colombia (an action that was eventually not taken).

Technology and intellectual property. One of the president’s first actions was to rescind the previous administration’s AI executive order. The new administration likewise extended a grace duration for TikTok’s impending restriction, sending waves throughout the technology sector, both in the United States and job abroad.

Energy, climate, and health. The president also withdrew the United States from the Paris Climate Agreement and the World Health Organization, putting an early focus on American energy independence and away from the previous administration’s international sustainability efforts.

Steps in-house counsel should consider:

– Assess the impact of possible tariff increases on supply chain and company connection.

– Assess the organization’s dependence on social networks platforms, such as for marketing purposes, and the prospective requirements to backup social networks data and properties in the event their preferred platform stops to be offered.

– Consider how developments in the brand-new administration’s approach to ecological, sustainability and governance concerns may impact the organization’s ESG technique.

Disclaimer: The details in any resource in this site need to not be interpreted as legal suggestions or as a legal viewpoint on specific facts, and need to not be considered representing the views of its authors, its sponsors, and/or ACC. These resources are not intended as a conclusive declaration on the subject attended to. Rather, they are intended to act as a tool providing practical guidance and references for the hectic internal specialist and other readers.