Where are we now with DEI initiatives?
On Jan. 21, 2025, President Donald Trump issued an executive order titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity”. Its stated purpose is to end illegal diversity, equity, and inclusion.
The executive order states, “It is the policy of the United States to protect the civil rights of all Americans and to promote individual initiative, excellence, and hard work. I therefore order all executive departments and agencies to terminate all discriminatory and illegal preferences, mandates, policies, programs, activities, guidance, regulations, enforcement actions, consent orders, and requirements.” It also directs agencies to encourage private employers to eliminate “illegal” DEI.
The executive order does not change existing law regarding discrimination in contracting, employment, or otherwise. It merely highlights the Administration’s focus on targeting organizations that violate existing anti-discrimination laws in their employment practices. Employers need to ensure that any DEI practices comply with established equal employment opportunity laws. The federal anti-discrimination laws that apply to private employers include Title VII, the ADA, the ADEA, along with other such measures enforced by the EEOC.
Certain employers are still required to comply with employee demographic data reporting via the federal EEO-1 process (which large employers submit in the second quarter of each year) – this compliance obligation remains unaffected by the Executive Order.
While the executive order does not apply to private-sector employment and contracting preferences for military veterans and individuals with disabilities, employers are advised to take the following actions:
- Thoroughly review employment practices, recruitment initiatives and any DEI programs for compliance with nondiscrimination statutes, such as Title VII of the Civil Rights Act or 1964
- Reassure employees of your commitment to equal employment opportunity and nondiscrimination
- Remove any policies that explicitly favor or disadvantage employees based on race, gender, or other protected characteristics
- Focus on inclusivity and its benefits while mitigating risks related to non-compliance of the executive order
- Consider engaging counsel to review any DEI programs, policies and practices
There are bound to be challenges to the executive order and more information about sectors, industries, and organizations that the federal agencies identify for investigation along with further scrutiny and guidance from the attorney general, secretary of education, and other federal agencies, so stay tuned.
