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

Remind me, what’s an executive order?

Executive orders are directives bought by the president of the United States that direct government companies and authorities to take particular actions. While they are not laws, employment 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 therefore do not need the approval of Congress. They must 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Executive orders may be rescinded, reversed by future presidents, or challenged in court, and enforcement concerns can alter during any administration.

The new administration’s actions have significant results beyond executive orders. For more on mitigating threat, global services can take new opportunities by remaining active.

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

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

EO 11246 needed every federal government agreement to include a statement that the contractor will not victimize any employee or candidate for employment based on 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 changing enforcement priorities in the new administration. The order directs all federal agencies to “combat unlawful 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 liberties workplace, indicating his record of “taking legal action against corporations who utilize ‘woke’ policies to victimize their workers.”

In addition to withdrawing EO 11246, the Jan. 21 executive order advises each company of the federal government to recognize “as much as nine potential civic compliance examinations” of private sector entities within 120 days of the order – by May 21, 2025.

The private sector entities based on these investigations consist of publicly traded corporations, large 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 organization’s threat tolerance?

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

– How will customers and stakeholders respond?

What in-house counsel should believe about:

Assess any federal agreements and grants

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

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

– Prepare for increased analysis and prospective civil compliance examinations

Document, file, file

– Hiring and recruitment procedures

– Performance assessments and promotion choices

– Training products and participation records

– Any changes to DEI policies

Implications for employment federal professionals

Among other steps, the Jan. 21 Executive Order needs the heads of federal agencies to include particular terms in every contract or grant award:

– “A term requiring the legal counterparty or grant recipient to concur that its compliance in all respects with all relevant Federal anti-discrimination laws is material to the government’s payment choices for functions of area 3729( b)( 4) of title 31, United States Code”; and

– “A term needing such counterparty or recipient to certify that it does not operate any programs promoting DEI that breach any suitable Federal anti-discrimination laws.”

Section 3729 of title 31 of the United States Code is an arrangement of the US False Claims Act, a federal law that enforces civil penalties on those who make incorrect claims to the government in order to influence the payment or invoice of cash or property.

The certification requirement brings a possible threat of litigation for federal professionals under the False Claims Act. In-house legal representatives at federal specialists therefore have a specific interest in guaranteeing their company’s policies, procedures, practices, communications and content, are evaluated. Assess if adjustments are required to alleviate the threat of litigation.

Executive orders targeting prohibited 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 restricting unlawful migration and deporting unlawful immigrants. The orders call for enforcement actions by federal companies against unlawful migration.

In-house lawyers ought to think about evaluating their organization’s work eligibility confirmation procedure. They may also wish to consider whether the organization is prepared for responding to an I-9 audit or a worksite enforcement action (or raid) by migration enforcement firms.

Sectors that may be particularly affected consist of agriculture, hospitality, and other markets such as building and 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 essential function to play in establishing and employment guaranteeing consistent application of the Form I-9 and E-Verify guidelines the federal government uses to carry out and impose 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.

Take a look at useful checklists of factors to consider appropriate for internal attorneys on the subject of I-9 audits and worksite enforcement actions.

If a company does not work together with a civil administrative warrant presented by US Immigration and Customs Enforcement (ICE), there is a risk that the agency could begin an I-9 audit if they felt a company was obstructing their need to jail a non-citizen staff member, or in many cases get a criminal warrant from a judge if actions support it.

Steps in-house counsel ought to think about:

– Determine the number of workers might possibly be impacted

– Review your company’s employment eligibility confirmation procedure

– Ensure your organization’s process is documented and defensible

– Implement and implement clear policies

– Monitor legal developments, consisting of litigation and enforcement assistance

Mitigate risk, remain nimble, and seize brand-new chances

The current executive orders will substantially impact global organizations. Legal departments and in-house counsel will require to help their companies comprehend and adapt to modifications, ensuring compliance or litigating when suitable.

A number of the new administration’s decisions will play out over the coming months, employment consisting of new executive orders and employment legal challenges. The Docket will continue to keep track of developments. Global in-house legal representatives should get ready for fast advancements 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 extra tariffs on imports from China. The former two were both delayed by a month as the administration takes part in settlements. Meanwhile, China has started its own vindictive 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. 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 restriction, sending out waves throughout the innovation 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 self-reliance and far from the previous administration’s worldwide sustainability efforts.

Steps in-house counsel need to consider:

the effect of potential tariff increases on supply chain and company continuity.

– Assess the organization’s dependence on social media platforms, such as for marketing purposes, and the potential needs to backup social networks information and assets in the event their preferred platform stops to be readily available.

– Consider how developments in the new administration’s approach to ecological, sustainability and governance concerns may affect the organization’s ESG technique.

Disclaimer: The information in any resource in this website should not be construed as legal advice or employment 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 definitive statement on the subject dealt with. Rather, they are intended to serve as a tool providing practical assistance and references for the hectic internal professional and other readers.