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

Remind me, what’s an executive order?

Executive orders are regulations 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 effect how existing laws are executed or imposed.

Executive orders impact the agencies 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 referall.us may be challenged in court if considered unconstitutional.

Executive orders might be rescinded, overturned by future presidents, somalibidders.com or challenged in court, and enforcement priorities can alter during any administration.

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

Implications of the executive orders for DEI efforts and employment in private-sector organizations

On Jan. 21, President Trump provided „Ending Illegal Discrimination and Restoring Merit-Based Opportunity,“ which reverses various previous executive orders and memoranda, including Executive Order 11246 (EO 11246) signed in 1965 by President Lyndon B. Johnson.

EO 11246 needed every government agreement to include a declaration that the contractor will not victimize any staff member or applicant for employment based upon 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 might be altering enforcement priorities in the new administration. The order directs all federal firms to „fight unlawful private-sector DEI choices, mandates, policies, programs, and activities.“

In December 2024, President-elect Trump tapped K. Dhillon to lead the Justice Department’s civil rights workplace, pointing to his record of „suing corporations who use ‚woke‘ policies to discriminate against their employees.“

In addition to revoking EO 11246, the Jan. 21 executive order advises each agency of the federal government to recognize „up to nine prospective civic compliance investigations“ of personal 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 – consisting of bar associations – big foundations, and universities whose endowments go beyond US$ 1 billion.

Organizations that may be targeted should ask:

– What is my organization’s danger tolerance?

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

– How will consumers and stakeholders react?

What internal counsel should think of:

Assess any federal agreements and grants

– Determine if they consist of any terms or conditions related to DEI that might contrast with present laws and regulations

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

– Get ready for increased examination and prospective civil compliance investigations

Document, document, file

– Hiring and recruitment processes

– Performance assessments and promotion choices

– Training materials and attendance records

– Any modifications to DEI policies

Implications for federal contractors

To name a few steps, the Jan. 21 Executive Order needs the heads of federal companies to include 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 appropriate Federal anti-discrimination laws is product to the 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 license that it does not operate any programs promoting DEI that break any relevant Federal anti-discrimination laws.“

Section 3729 of title 31 of the United States Code is a provision of the US False Claims Act, a federal law that imposes civil penalties on those who make false claims to the government in order to affect the payment or invoice of money or residential or commercial property.

The certification requirement carries a potential danger of lawsuits for federal specialists under the False Claims Act. In-house legal representatives at federal specialists therefore have a specific interest in ensuring their company’s policies, treatments, practices, interactions and material, are evaluated. Assess if changes are needed to reduce the danger of litigation.

Executive orders targeting prohibited migration

President Trump’s preliminary flurry of executive orders included lots of – such as the Jan. 20 executive order „Protecting the American People Against Invasion“ – intended at limiting prohibited migration and deporting unlawful immigrants. The orders call for enforcement actions by federal firms against prohibited migration.

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

Sectors that may be especially affected include agriculture, 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 work in hospitality, representing 7.1 percent of the labor force.

In-house counsel have an essential function to play in establishing and making sure constant application of the Form I-9 and E-Verify guidelines the federal government uses to implement and impose immigration law, shares John W. Mazzeo, AGC, director of I-9 and E-Verify compliance for Vertical Screen, Inc., in a 2024 ACC Docket article.

Take a look at informative checklists of considerations pertinent for internal attorneys on the topic 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 danger that the agency might commence an I-9 audit if they felt an employer was blocking their requirement to arrest a non-citizen employee, or in many cases acquire a criminal warrant from a judge if actions support it.

Steps in-house counsel need to think about:

– Determine the number of workers could possibly be impacted

– Review your organization’s employment eligibility confirmation process

– Ensure your company’s process is recorded and defensible

– Implement and impose clear policies

– Monitor legal developments, consisting of lawsuits and enforcement assistance

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

The recent executive orders will considerably affect international organizations. Legal departments and internal counsel will require to help their organizations comprehend and adapt to modifications, guaranteeing compliance or litigating when suitable.

Much of the new administration’s choices will play out over the coming months, including new executive orders and legal difficulties. The Docket will continue to keep an eye on advancements. Global internal legal representatives ought to get ready for quick advancements related to:

Trade and tariffs. On Feb. 1, President Trump purchased 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 begun its own vindictive procedures on US items. He had actually previously announced his intent to impose 25-percent escalating tariffs on Colombia (an action that was ultimately not taken).

Technology and copyright. One of the president’s first actions was to rescind the previous administration’s AI executive order. The new administration also extended a grace period for TikTok’s approaching restriction, sending out waves throughout the technology sector, both in the United States and 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 emphasis on American energy independence and far from the previous administration’s global sustainability efforts.

Steps in-house counsel need to think about:

– Assess the effect of prospective tariff boosts on supply chain and organization connection.

– Assess the company’s dependency on social media platforms, such as for marketing purposes, and the prospective needs to backup social media data and properties in case their preferred platform ceases to be offered.

– Consider how advancements in the brand-new administration’s approach to ecological, sustainability and governance concerns may impact the company’s ESG strategy.

Disclaimer: The information in any resource in this site need to not be interpreted as legal recommendations or as a legal viewpoint on specific realities, and must 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 attended to. Rather, they are intended to act as a tool providing practical guidance and references for the busy internal practitioner and other readers.