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

Remind me, what’s an executive order?

Executive orders are regulations bought by the president of the United States that direct federal government firms and authorities to take specific actions. While they are not laws, they have the force of law and effect how existing laws are implemented or implemented.

Executive orders impact the companies of the executive branch and therefore do not need 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Executive orders may be rescinded, overturned by future presidents, or challenged in court, and enforcement top priorities can change during any administration.

The new administration’s actions have far-reaching impacts beyond executive orders. For more on mitigating threat, global companies can seize brand-new chances by staying nimble.

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

On Jan. 21, President Trump issued « Ending Illegal Discrimination and Restoring Merit-Based Opportunity, » which reverses various prior executive orders and memoranda, including Executive Order 11246 (EO 11246) checked in 1965 by President Lyndon B. Johnson.

EO 11246 needed every government agreement to include a declaration that the specialist will not victimize any employee or candidate for work based on 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 changing enforcement concerns in the brand-new administration. The order directs all federal firms to « combat unlawful 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 rights workplace, indicating his record of « suing corporations who use ‘woke’ policies to victimize their workers. »

In addition to withdrawing EO 11246, the Jan. 21 executive order advises each agency 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 economic sector entities based on these examinations include openly traded corporations, large nonprofits – consisting of bar associations – large foundations, and universities whose endowments surpass US$ 1 billion.

Organizations that may be targeted should ask:

– What is my organization’s threat tolerance?

– How will staff members react to the business’s actions?

– How will consumers and stakeholders react?

What in-house counsel must believe about:

Assess any federal contracts and grants

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

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

– Prepare for increased analysis and prospective civil compliance examinations

Document, document, document

– Hiring and recruitment procedures

– Performance evaluations and promotion choices

– Training products and presence 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 particular terms in every contract or grant award:

– « A term needing the legal counterparty or grant recipient to agree that its compliance in all aspects with all suitable 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 requiring such counterparty or recipient to accredit that it does not run any programs promoting DEI that violate any appropriate 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 enforces civil charges on those who make false claims to the government in order to affect the payment or receipt of cash or property.

The accreditation requirement brings a possible risk of litigation for federal specialists under the False Claims Act. In-house attorneys at federal specialists thus have a specific interest in guaranteeing their organization’s policies, procedures, practices, interactions and material, are examined. Assess if modifications are needed to reduce the danger of lawsuits.

Executive orders targeting unlawful immigration

President Trump’s initial 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 immigration and deporting illegal immigrants. The orders require enforcement actions by federal firms versus prohibited migration.

In-house lawyers ought to think about evaluating their organization’s work eligibility verification process. They might also want to think about whether the company is gotten ready for responding to an I-9 audit or a worksite enforcement action (or raid) by migration enforcement agencies.

Sectors that may be especially impacted consist of 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 approximates that more than one million undocumented immigrants operate in hospitality, representing 7.1 percent of the labor force.

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

Check out informative checklists of factors to consider appropriate for internal legal representatives 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 company might begin an I-9 audit if they felt a company was blocking their need to jail a non-citizen employee, or in some cases get a criminal warrant from a judge if actions support it.

Steps internal counsel should think about:

– Determine the number of staff members could possibly be impacted

– Review your company’s work eligibility verification procedure

– Ensure your organization’s procedure is documented and defensible

– Implement and job impose clear policies

– Monitor job legal advancements, including litigation and enforcement guidance

Mitigate risk, stay nimble, and seize new opportunities

The current executive orders will considerably impact international services. Legal departments and internal counsel will require to help their companies comprehend and adapt to changes, job making sure compliance or litigating when proper.

Many of the new administration’s decisions will play out over the coming months, including brand-new executive orders and legal obstacles. The Docket will continue to monitor advancements. Global internal legal representatives need to get ready for rapid developments connected 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 previous 2 were both delayed by a month as the administration participates in negotiations. Meanwhile, China has begun its own vindictive measures on US products. He had formerly revealed his intent to enforce 25-percent intensifying tariffs on Colombia (an action that was ultimately not taken).

Technology and intellectual home. One of the president’s very first actions was to rescind the previous administration’s AI executive order. The brand-new administration likewise extended a grace duration for TikTok’s approaching ban, sending out waves throughout the technology sector, both in the United States and abroad.

Energy, climate, and health. The president likewise 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 worldwide sustainability efforts.

Steps in-house counsel need to think about:

– Assess the impact of boosts on supply chain and organization continuity.

– Assess the company’s dependency on social networks platforms, such as for marketing functions, and the possible requirements to backup social networks data and assets in case their preferred platform stops to be offered.

– Consider how developments in the brand-new administration’s method to ecological, sustainability and governance issues might impact the company’s ESG technique.

Disclaimer: The info in any resource in this website need to not be interpreted as legal guidance or as a legal viewpoint on specific facts, and should not be considered representing the views of its authors, its sponsors, and/or ACC. These resources are not planned as a conclusive statement on the subject dealt with. Rather, they are intended to serve as a tool supplying useful assistance and references for the busy internal practitioner and other readers.