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 bought by the president of the United States that direct government companies and officials to take . 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 for that reason do not need the approval of Congress. They must be within the president’s constitutional authority and may be challenged in court if considered unconstitutional.

Executive orders might be rescinded, reversed by future presidents, or challenged in court, somalibidders.com and enforcement top priorities can change during any administration.

The new administration’s actions have significant results beyond executive orders. For more on mitigating threat, international businesses can take new opportunities by staying nimble.

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, including Executive Order 11246 (EO 11246) checked in 1965 by President Lyndon B. Johnson.

EO 11246 required every government agreement to include a declaration that the contractor will not victimize any worker or referall.us candidate for employment based on race, creed, color, or national origin.

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

However, the executive order signals that there might be altering enforcement concerns in the new administration. The order directs all federal agencies to “combat unlawful 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 workplace, indicating his record of “taking legal action against corporations who use ‘woke’ policies to discriminate versus their workers.”

In addition to revoking EO 11246, the Jan. 21 executive order advises each firm of the federal government to recognize “approximately 9 potential civic compliance examinations” of economic sector entities within 120 days of the order – by May 21, 2025.

The personal sector entities based on these investigations consist of publicly traded corporations, large nonprofits – including bar associations – big structures, and universities whose endowments exceed 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 consumers and stakeholders react?

What in-house counsel needs to think of:

Assess any federal agreements and grants

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

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

– Get ready for increased analysis and possible civil compliance investigations

Document, document, document

– Hiring and recruitment procedures

– Performance examinations and promotion decisions

– Training materials and attendance records

– Any changes to DEI policies

Implications for federal contractors

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

– “A term requiring the legal counterparty or grant recipient to concur that its compliance in all aspects with all applicable Federal anti-discrimination laws is material to the federal government’s payment choices for functions 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 operate any programs promoting DEI that break 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 penalties on those who make incorrect claims to the federal government in order to affect the payment or invoice of money or home.

The accreditation requirement carries a prospective risk of lawsuits for federal professionals under the False Claims Act. In-house legal representatives at federal contractors therefore have a specific interest in guaranteeing their organization’s policies, procedures, practices, interactions and material, are reviewed. Assess if changes are needed to alleviate the threat of litigation.

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” – aimed at limiting illegal immigration and deporting illegal immigrants. The orders call for enforcement actions by federal companies against illegal immigration.

In-house legal representatives must think about reviewing their organization’s employment eligibility confirmation process. They may also wish to consider whether the organization is gotten ready for responding to an I-9 audit or a worksite enforcement action (or raid) by migration enforcement companies.

Sectors that may be particularly impacted include farming, hospitality, and other industries such as building and construction. From 2020-2022, 42 percent of crop farmworkers held no work permission, 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 developing and ensuring constant application of the Form I-9 and E-Verify guidelines 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 article.

Take a look at helpful checklists of considerations pertinent for in-house attorneys on the topic 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 threat that the firm could begin an I-9 audit if they felt an employer was blocking their requirement to arrest a non-citizen employee, 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 possibly be impacted

– Review your organization’s work eligibility confirmation process

– Ensure your organization’s procedure is documented and defensible

– Implement and impose clear policies

– Monitor legal developments, including litigation and enforcement assistance

Mitigate danger, remain active, and take new chances

The recent executive orders will substantially affect global companies. Legal departments and internal counsel will require to help their organizations understand and adapt to changes, guaranteeing compliance or litigating when appropriate.

A lot of the new administration’s decisions will play out over the coming months, including new executive orders and legal challenges. The Docket will continue to keep track of advancements. Global in-house legal representatives need to get ready for rapid advancements connected to:

Trade and tariffs. On Feb. 1, President Trump ordered the imposition of a 25-percent tariff on imports from Canada and Mexico, and 10-percent extra tariffs on imports from China. The former 2 were both postponed by a month as the administration engages in negotiations. Meanwhile, China has started its own vindictive procedures on US items. He had formerly revealed his intent to enforce 25-percent escalating 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 impending ban, sending out waves throughout the innovation sector, both in the United States and abroad.

Energy, environment, 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 international sustainability efforts.

Steps in-house counsel should consider:

– Assess the impact of possible tariff increases on supply chain and business connection.

– Assess the company’s dependence on social media platforms, such as for marketing purposes, and the possible needs to backup social networks information and possessions in the event their chosen platform ceases to be readily available.

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

Disclaimer: The details in any resource in this website must not be interpreted as legal recommendations or as a legal viewpoint on particular truths, and need to not be thought about representing the views of its authors, its sponsors, and/or ACC. These resources are not planned as a definitive statement on the subject addressed. Rather, they are meant to work as a tool providing useful guidance and referrals for the busy internal specialist and other readers.