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 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 implemented.

Executive orders impact 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 might be challenged in court if deemed unconstitutional.

Executive orders might be rescinded, reversed by future presidents, or challenged in court, and enforcement concerns can change throughout any administration.

The new administration’s actions have far-reaching effects beyond executive orders. For more on mitigating danger, adremcareers.com global businesses can seize brand-new opportunities by staying active.

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

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

EO 11246 required every government agreement to include a statement that the contractor will not discriminate versus 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 stays the same for private-sector employees.

However, the executive order signals that there may be changing enforcement concerns in the new administration. The order directs all federal agencies to “combat prohibited private-sector DEI choices, requireds, 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 discriminate against their workers.”

In addition to withdrawing EO 11246, the Jan. 21 executive order instructs each company of the federal government to determine “as much as nine prospective civic compliance investigations” of economic sector entities within 120 days of the order – by May 21, 2025.

The economic sector entities subject to these examinations consist of openly traded corporations, big nonprofits – including bar associations – large foundations, and universities whose endowments surpass US$ 1 billion.

Organizations that may be targeted should ask:

– What is my organization’s risk tolerance?

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

– How will customers and stakeholders react?

What in-house counsel ought to consider:

Assess any federal contracts and grants

– Determine if they consist of any terms or conditions connected to DEI that may conflict with existing laws and policies

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

– Prepare for increased examination and potential civil compliance investigations

Document, file, somalibidders.com document

– Hiring and recruitment procedures

– Performance examinations and promo choices

– Training products 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 agencies to consist of particular terms in every agreement or grant award:

– “A term requiring the legal counterparty or grant recipient to agree that its compliance in all aspects with all applicable Federal anti-discrimination laws is material to the government’s payment choices for functions of section 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 suitable 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 incorrect claims to the government in order to influence the payment or receipt of money or residential or commercial property.

The accreditation requirement carries a possible risk of lawsuits for federal contractors under the False Claims Act. In-house lawyers at federal contractors therefore have a specific interest in ensuring their company’s policies, procedures, practices, communications and content, are reviewed. Assess if changes are needed to mitigate the danger of lawsuits.

Executive orders targeting illegal 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” – focused on limiting illegal migration and deporting unlawful immigrants. The orders call for enforcement actions by federal firms versus unlawful immigration.

In-house attorneys ought to consider examining their company’s work eligibility verification procedure. 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 might be especially affected consist of agriculture, hospitality, and other industries such as construction. From 2020-2022, referall.us 42 percent of held no work authorization, according to the US Department of Agriculture. The American Immigration Council approximates that more than one million undocumented immigrants work in hospitality, representing 7.1 percent of the labor force.

In-house counsel have an important role to play in developing and guaranteeing consistent application of the Form I-9 and E-Verify policies the federal government uses to carry out 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.

Have a look at helpful lists of considerations pertinent for internal lawyers on the subject of I-9 audits and worksite enforcement actions.

If an employer does not cooperate 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 a company was obstructing their requirement to arrest a non-citizen worker, or in some cases obtain a criminal warrant from a judge if actions support it.

Steps internal counsel should consider:

– Determine how numerous employees could potentially be affected

– Review your organization’s employment eligibility confirmation process

– Ensure your company’s process is documented and defensible

– Implement and impose clear policies

– Monitor legal developments, including litigation and enforcement assistance

Mitigate risk, remain active, and seize new opportunities

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

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

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 2 were both delayed by a month as the administration participates in negotiations. Meanwhile, China has started its own retaliatory steps on US items. He had actually previously revealed his intent to enforce 25-percent intensifying tariffs on Colombia (an action that was ultimately not taken).

Technology and copyright. 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 upcoming ban, sending out waves throughout the technology sector, both in the United States and abroad.

Energy, environment, 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 away from the previous administration’s worldwide sustainability efforts.

Steps in-house counsel need to think about:

– Assess the effect of prospective tariff boosts on supply chain and company continuity.

– Assess the organization’s dependency on social media platforms, such as for marketing purposes, and the possible requirements to backup social networks data and assets in case their chosen platform ceases to be offered.

– Consider how developments in the new administration’s method to environmental, sustainability and governance problems might impact the company’s ESG method.

Disclaimer: The info in any resource in this site must not be interpreted as legal advice or as a legal viewpoint on specific facts, and should not be thought about representing the views of its authors, its sponsors, and/or ACC. These resources are not meant as a definitive declaration on the subject addressed. Rather, they are meant to serve as a tool supplying useful guidance and recommendations for the busy internal specialist and other readers.