2025 uS Executive Orders, DEI, and Employment: how In-house Lawyers can Assist the Business

Remind me, what’s an executive order?

Executive orders are directives bought by the president of the United States that direct government companies and officials to take specific actions. While they are not laws, they have the force of law and effect how existing laws are executed or enforced.

Executive orders impact the agencies of the executive branch and therefore do not need the approval of Congress. They must be within the president’s constitutional authority and employment might be challenged in court if deemed unconstitutional.

Executive orders may be rescinded, overturned by future presidents, or challenged in court, and enforcement priorities can alter throughout any administration.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 threat, worldwide companies can take new chances by staying active.

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 numerous prior executive orders and memoranda, including Executive Order 11246 (EO 11246) signed in 1965 by President Lyndon B. Johnson.

EO 11246 required every federal government contract to include a declaration that the professional will not discriminate against any worker or applicant for employment based on race, creed, color, or nationwide origin.

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

However, the executive order signals that there may be changing enforcement concerns in the new administration. The order directs all federal agencies to “fight prohibited 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 liberties office, pointing to his record of “taking legal action against corporations who use ‘woke’ policies to discriminate against their workers.”

In addition to revoking EO 11246, the Jan. 21 executive order advises each firm of the federal government to recognize “approximately nine 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 consist of publicly traded corporations, big nonprofits – consisting of 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 risk tolerance?

– How will employees respond to the company’s actions?

– How will customers and stakeholders respond?

What in-house counsel must believe about:

Assess any federal agreements and grants

– Determine if they contain any terms or conditions associated with DEI that might clash with current laws and policies

Review your organization’s existing DEI policies to comprehend your danger

– Get ready for increased scrutiny and potential civil compliance investigations

Document, file, document

– Hiring and recruitment procedures

– Performance examinations and promotion choices

– Training materials and participation records

– Any changes to DEI policies

Implications for federal specialists

Among other steps, the Jan. 21 Executive Order needs the heads of federal agencies to consist of specific terms in every contract or employment grant award:

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

– “A term needing such counterparty or recipient to certify that it does not operate any programs promoting DEI that breach any relevant 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 imposes civil charges on those who make false claims to the federal government in order to affect the payment or invoice of money or home.

The certification requirement carries a potential threat of lawsuits for federal professionals under the False Claims Act. In-house attorneys at federal specialists thus have a particular interest in ensuring their company’s policies, procedures, practices, communications and content, are evaluated. Assess if adjustments are needed to mitigate the threat of litigation.

Executive orders targeting prohibited migration

President Trump’s initial flurry of executive orders included numerous – such as the Jan. 20 executive order “Protecting the American People Against Invasion” – targeted at restricting prohibited immigration and deporting unlawful immigrants. The orders call for by federal agencies versus illegal migration.

In-house attorneys ought to consider examining their organization’s work eligibility confirmation procedure. They might also wish to think about whether the company is prepared for reacting to an I-9 audit or a worksite enforcement action (or raid) by migration enforcement firms.

Sectors that may be especially impacted consist of farming, hospitality, and other markets such as building and 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 a crucial role to play in establishing and making sure constant application of the Form I-9 and E-Verify regulations the federal government utilizes to execute and enforce immigration 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 useful lists of considerations relevant for internal attorneys on the subject of I-9 audits and worksite enforcement actions.

If a company does not comply with a civil administrative warrant presented by US Immigration and Customs Enforcement (ICE), there is a threat that the company might commence an I-9 audit if they felt a company was blocking their requirement to detain a non-citizen employee, or in many cases obtain a criminal warrant from a judge if actions support it.

Steps internal counsel ought to think about:

– Determine how lots of employees could potentially be affected

– Review your organization’s work eligibility verification procedure

– Ensure your company’s procedure is documented and defensible

– Implement and implement clear policies

– Monitor legal advancements, including litigation and enforcement assistance

Mitigate risk, stay nimble, and seize new chances

The current executive orders will significantly impact international services. Legal departments and in-house counsel will need to help their organizations understand and adjust to changes, ensuring compliance or litigating when suitable.

A lot of the brand-new administration’s choices will play out over the coming months, including new executive orders and legal obstacles. The Docket will continue to keep an eye on advancements. Global internal attorneys ought to get ready for fast developments associated with:

Trade and tariffs. On Feb. 1, President Trump ordered the imposition of a 25-percent tariff on imports from Canada and Mexico, and 10-percent additional tariffs on imports from China. The previous two were both delayed by a month as the administration engages in settlements. Meanwhile, China has actually begun its own vindictive procedures on US products. He had formerly announced his intent to enforce 25-percent escalating tariffs on Colombia (an action that was eventually not taken).

Technology and intellectual home. Among the president’s first actions was to rescind the previous administration’s AI executive order. The brand-new administration also extended a grace period for TikTok’s impending ban, sending waves throughout the technology sector, both in the United States and abroad.

Energy, environment, 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 self-reliance and far from the previous administration’s worldwide sustainability efforts.

Steps internal counsel ought to consider:

– Assess the effect of prospective tariff increases on supply chain and business continuity.

– Assess the company’s dependence on social media platforms, such as for marketing purposes, and the possible needs to backup social networks information and possessions in case their preferred platform ceases to be available.

– Consider how developments in the new administration’s technique to ecological, sustainability and governance issues may affect the company’s ESG technique.

Disclaimer: The info in any resource in this site should not be construed as legal guidance or as a legal viewpoint on specific facts, employment and should not be thought about representing the views of its authors, its sponsors, and/or ACC. These resources are not planned as a definitive declaration on the subject dealt with. Rather, they are intended to act as a tool offering practical assistance and references for the hectic internal practitioner and other readers.