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 directives purchased by the president of the United States that direct government firms and officials to take specific actions. While they are not laws, they have the force of law and impact how existing laws are executed or enforced.

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

Executive orders may be rescinded, reversed by future presidents, or challenged in court, and enforcement concerns can alter throughout any administration.

The new administration’s actions have far-reaching results beyond executive orders. For more on mitigating threat, worldwide organizations can seize new opportunities by remaining active.

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

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

EO 11246 needed every federal government contract to include a declaration that the professional will not victimize any employee or candidate for employment based upon race, creed, color, or nationwide origin.

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

However, the executive order signals that there may be altering enforcement concerns in the brand-new administration. The order directs all federal firms to „fight 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, pointing to his record of „taking legal action against corporations who use ‘woke’ policies to victimize their workers.”

In addition to revoking EO 11246, the Jan. 21 executive order instructs each company of the federal government to determine „as much as 9 prospective civic compliance examinations” of private sector entities within 120 days of the order – by May 21, 2025.

The personal sector entities based on these investigations include openly traded corporations, big nonprofits – including bar associations – big structures, and universities whose endowments surpass US$ 1 billion.

Organizations that may be targeted should ask:

– What is my organization’s danger tolerance?

– How will staff members respond to the company’s actions?

– How will consumers and stakeholders respond?

What internal counsel ought to consider:

Assess any federal agreements and grants

– Determine if they include any terms or conditions connected to DEI that might conflict with current laws and policies

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

– Prepare for increased scrutiny and potential civil compliance investigations

Document, document, document

– Hiring and recruitment procedures

– Performance evaluations and promo choices

– Training products and attendance records

– Any changes to DEI policies

Implications for federal specialists

Among other procedures, the Jan. 21 Executive Order requires the heads of federal agencies to include specific terms in every contract or grant award:

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

– „A term needing such counterparty or recipient to accredit that it does not operate 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 incorrect claims to the government in order to influence the payment or receipt of cash or residential or commercial property.

The accreditation requirement brings a prospective risk of litigation for federal specialists under the False Claims Act. In-house lawyers at federal professionals thus have a particular interest in guaranteeing their company’s policies, procedures, practices, interactions and material, are reviewed. Assess if modifications are needed to alleviate the risk of lawsuits.

Executive orders targeting unlawful migration

President Trump’s preliminary flurry of executive orders included numerous – such as the Jan. 20 executive order „Protecting the American People Against Invasion” – intended at restricting unlawful immigration and deporting unlawful immigrants. The orders require enforcement actions by federal agencies versus illegal immigration.

In-house legal representatives ought to think about examining their company’s employment eligibility verification process. They may likewise wish to think about whether the company is gotten ready for reacting to an I-9 audit or a worksite enforcement action (or raid) by migration enforcement firms.

Sectors that might be particularly impacted consist of agriculture, job 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 work in hospitality, representing 7.1 percent of the labor force.

In-house counsel have an important function to play in establishing and ensuring consistent 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., job in a 2024 ACC Docket short article.

Check out helpful lists of factors to consider appropriate for internal attorneys on the topic 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 threat that the firm might begin an I-9 audit if they felt a company was blocking their need to arrest a non-citizen worker, or in some cases acquire a criminal warrant from a judge if actions support it.

Steps internal counsel need to consider:

– Determine the number of employees might possibly be impacted

– Review your company’s work eligibility verification process

– Ensure your organization’s process is recorded and defensible

– Implement and enforce clear policies

– Monitor legal developments, consisting of lawsuits and enforcement guidance

Mitigate threat, remain nimble, and seize new chances

The recent executive orders will significantly affect worldwide services. Legal departments and internal counsel will require to help their organizations comprehend and adapt to changes, making sure compliance or litigating when proper.

Much of the new administration’s decisions will play out over the coming months, consisting of new executive orders and legal difficulties. The Docket will continue to keep an eye on advancements. Global internal attorneys need to prepare for fast developments related 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 2 were both postponed by a month as the administration participates in settlements. Meanwhile, China has begun its own vindictive steps on US items. He had actually previously announced his intent to enforce 25-percent intensifying tariffs on Colombia (an action that was eventually 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 duration for TikTok’s upcoming ban, sending 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 focus on American energy and far from the previous administration’s international sustainability efforts.

Steps in-house counsel ought to consider:

– Assess the impact of potential tariff increases on supply chain and company connection.

– Assess the company’s dependency on social media platforms, such as for marketing purposes, and the prospective needs to backup social networks information and assets in the occasion their chosen platform stops to be offered.

– Consider how developments in the brand-new administration’s technique to environmental, sustainability and governance concerns may affect the company’s ESG strategy.

Disclaimer: The info in any resource in this site need to not be construed as legal advice or as a legal opinion on specific facts, and job need to not be considered representing the views of its authors, its sponsors, and/or ACC. These resources are not meant as a conclusive statement on the subject resolved. Rather, job they are intended to function as a tool offering useful guidance and referrals for the hectic in-house professional and other readers.