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

Remind me, what’s an executive order?

Executive orders are directives purchased by the president of the United States that direct federal government firms and officials to take particular actions. While they are not laws, they have the force of law and effect how existing laws are carried out or implemented.

Executive orders affect the agencies 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 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Executive orders may be rescinded, overturned by future presidents, or challenged in court, and enforcement priorities can change throughout any administration.

The brand-new administration’s actions have far-reaching results beyond executive orders. For more on mitigating danger, global services can take brand-new opportunities by staying active.

Implications of the executive orders for DEI efforts and employment in private-sector job 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 required every government contract to include a declaration that the professional will not victimize any worker or applicant for employment based on race, creed, color, or national origin.

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

However, the executive order signals that there might be altering enforcement priorities in the brand-new administration. The order directs all federal firms 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, indicating his record of „taking legal action against corporations who utilize ‚woke‘ policies to victimize their employees.“

In addition to withdrawing EO 11246, the Jan. 21 executive order advises each agency of the federal government to recognize „up to 9 prospective civic compliance examinations“ of personal sector entities within 120 days of the order – by May 21, 2025.

The economic sector entities subject to these examinations include publicly traded corporations, big nonprofits – consisting of bar associations – big structures, and universities whose endowments exceed US$ 1 billion.

Organizations that may be targeted should ask:

– What is my company’s risk tolerance?

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

– How will consumers and stakeholders react?

What internal counsel must consider:

Assess any federal contracts and grants

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

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

– Get ready for increased examination and prospective civil compliance investigations

Document, document, file

– Hiring and job recruitment processes

– Performance examinations and promo decisions

– Training materials and participation records

– Any changes to DEI policies

Implications for federal specialists

Among other measures, the Jan. 21 Executive Order needs the heads of federal companies to consist of specific terms in every agreement or grant award:

– „A term needing the contractual counterparty or grant recipient to agree that its compliance in all aspects with all appropriate Federal anti-discrimination laws is material to the federal government’s payment decisions for functions of section 3729( b)( 4) of title 31, United States Code“; and

– „A term requiring such counterparty or recipient to certify that it does not operate any programs promoting DEI that break any applicable Federal anti-discrimination laws.“

Section 3729 of title 31 of the United States Code is a provision of the US Act, a federal law that enforces civil charges on those who make false claims to the federal government in order to influence the payment or receipt of cash or home.

The certification requirement brings a prospective threat of lawsuits for federal specialists under the False Claims Act. In-house legal representatives at federal contractors thus have a specific interest in ensuring their organization’s policies, procedures, practices, interactions and content, are evaluated. Assess if modifications are required to alleviate the threat of litigation.

Executive orders targeting illegal immigration

President Trump’s initial flurry of executive orders consisted of numerous – such as the Jan. 20 executive order „Protecting the American People Against Invasion“ – targeted at limiting illegal immigration and deporting illegal immigrants. The orders require enforcement actions by federal companies versus illegal immigration.

In-house attorneys must consider examining their company’s work eligibility verification procedure. They may likewise desire to think about whether the company is prepared for reacting to an I-9 audit or a worksite enforcement action (or raid) by immigration enforcement companies.

Sectors that may be especially affected include farming, hospitality, and other industries 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 essential role to play in developing and making sure constant application of the Form I-9 and E-Verify guidelines the federal government utilizes to carry out and enforce migration law, shares John W. Mazzeo, AGC, director of I-9 and E-Verify compliance for Vertical Screen, Inc., in a 2024 ACC Docket post.

Have a look at informative checklists of considerations appropriate for in-house attorneys on the subject of I-9 audits and worksite enforcement actions.

If an employer does not cooperate with a civil administrative warrant presented by US Immigration and Customs Enforcement (ICE), there is a risk that the firm could start an I-9 audit if they felt a company was obstructing their requirement to jail a non-citizen worker, or in some cases acquire a criminal warrant from a judge if actions support it.

Steps in-house counsel ought to think about:

– Determine how lots of workers might potentially be impacted

– Review your company’s work eligibility verification process

– Ensure your company’s procedure is documented and defensible

– Implement and enforce clear policies

– Monitor legal developments, including lawsuits and enforcement assistance

Mitigate danger, stay nimble, and seize brand-new opportunities

The current executive orders will substantially affect worldwide services. Legal departments and internal counsel will require to assist their organizations understand and adjust to modifications, making sure compliance or litigating when appropriate.

A number of the new administration’s choices will play out over the coming months, including brand-new executive orders and legal obstacles. The Docket will continue to keep an eye on advancements. Global in-house legal representatives need to get ready for rapid advancements 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 extra tariffs on imports from China. The previous two were both delayed by a month as the administration participates in settlements. Meanwhile, China has begun its own retaliatory steps on US products. He had formerly announced his intent to enforce 25-percent intensifying tariffs on Colombia (an action that was ultimately not taken).

Technology and intellectual home. Among 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 approaching restriction, sending waves throughout the innovation 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 emphasis on American energy independence and away from the previous administration’s international sustainability efforts.

Steps in-house counsel should consider:

– Assess the effect of potential tariff boosts on supply chain and business continuity.

– Assess the organization’s dependence on social networks platforms, job such as for marketing functions, and the prospective requirements to backup social media information and properties in case their preferred platform ceases to be readily available.

– Consider how developments in the brand-new administration’s method to ecological, sustainability and governance problems may impact the company’s ESG strategy.

Disclaimer: The info in any resource in this website ought to not be construed as legal guidance or as a legal opinion 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 definitive statement on the subject dealt with. Rather, they are planned to serve as a tool providing useful guidance and referrals for the busy internal practitioner and other readers.