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

Remind me, what’s an executive order?

Executive orders are instructions bought by the president of the United States that direct government companies and officials to take specific actions. While they are not laws, they have the force of law and effect how existing laws are executed or implemented.

Executive orders impact the firms of the executive branch and therefore 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Executive orders might be rescinded, reversed by future presidents, or challenged in court, and enforcement concerns can alter throughout any administration.

The new administration’s actions have far-reaching results beyond executive orders. For more on mitigating risk, global businesses can take brand-new opportunities by remaining nimble.

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

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

EO 11246 needed every government agreement to include a statement that the contractor will not discriminate versus any worker or applicant for work based on race, creed, color, or nationwide origin.

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

However, the executive order signals that there may be altering enforcement top priorities in the new administration. The order directs all federal companies to “fight unlawful private-sector DEI preferences, requireds, policies, programs, and activities.”

In December 2024, President-elect Trump tapped Harmeet K. Dhillon to lead the Justice Department’s civil rights workplace, pointing to his record of “taking legal action against corporations who utilize ‘woke’ policies to discriminate versus their workers.”

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

The economic sector entities subject to these examinations include openly traded corporations, large nonprofits – consisting of bar associations – large structures, and universities whose endowments go beyond US$ 1 billion.

Organizations that may be targeted should ask:

– What is my company’s danger tolerance?

– How will employees respond to the company’s actions?

– How will consumers and employment stakeholders react?

What internal counsel should believe about:

Assess any federal contracts and grants

– Determine if they consist of any terms or conditions connected to DEI that might clash with existing laws and guidelines

Review your organization’s existing DEI policies to comprehend your threat

– Get ready for increased analysis and prospective civil compliance examinations

Document, document, document

– Hiring and employment recruitment processes

– Performance evaluations and promo decisions

– Training materials and attendance records

– Any changes to DEI policies

Implications for federal specialists

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

– “A term needing the legal counterparty or grant recipient to agree that its compliance in all respects with all suitable Federal anti-discrimination laws is material to the federal government’s payment decisions for purposes of section 3729( b)( 4) of title 31, United States Code”; and

– “A term requiring such counterparty or recipient to certify that it does not operate any programs promoting DEI that breach any applicable 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 charges on those who make false claims to the government in order to influence the payment or receipt of money or property.

The accreditation requirement carries a prospective danger of litigation for federal specialists under the False Claims Act. In-house lawyers at federal contractors hence have a specific interest in ensuring their company’s policies, treatments, practices, interactions and content, are evaluated. Assess if modifications are needed to alleviate the risk of lawsuits.

Executive orders targeting unlawful 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 limiting unlawful migration and deporting prohibited immigrants. The orders call for enforcement actions by federal agencies versus prohibited immigration.

In-house lawyers ought to think about examining their company’s employment eligibility verification procedure. They might likewise desire to think about whether the organization is gotten ready for reacting to an I-9 audit or a worksite enforcement action (or raid) by immigration enforcement firms.

Sectors that may be particularly affected consist of 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 operate in hospitality, representing 7.1 percent of the workforce.

In-house counsel have an essential role to play in establishing and guaranteeing consistent application of the Form I-9 and E-Verify policies the federal government uses to execute and impose immigration law, shares John W. Mazzeo, AGC, director of I-9 and E-Verify compliance for employment Vertical Screen, Inc., in a 2024 ACC Docket article.

Take a look at informative checklists of considerations relevant for internal lawyers on the topic of I-9 audits and worksite enforcement actions.

If an employer does not work together with a civil administrative warrant provided by US Immigration and Customs Enforcement (ICE), there is a danger that the company could begin an I-9 audit if they felt an employer was blocking their requirement to arrest a non-citizen staff member, or sometimes get a criminal warrant from a judge if actions support it.

Steps in-house counsel should think about:

– Determine how numerous employees might possibly be impacted

– Review your organization’s work eligibility verification process

– Ensure your organization’s procedure is recorded and defensible

– Implement and impose clear policies

– Monitor legal advancements, including litigation and enforcement guidance

Mitigate risk, stay nimble, and take brand-new chances

The recent executive orders will considerably affect international organizations. Legal departments and in-house counsel will need to help their companies comprehend and adjust to changes, guaranteeing compliance or litigating when proper.

Many of the new administration’s decisions will play out over the coming months, consisting of brand-new executive orders and employment legal difficulties. The Docket will continue to keep an eye on advancements. Global in-house attorneys need to prepare for quick 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 additional tariffs on imports from China. The previous 2 were both delayed by a month as the administration takes part in settlements. Meanwhile, China has started its own retaliatory measures on US items. He had previously revealed his intent to impose 25-percent escalating tariffs on Colombia (an action that was eventually not taken).

Technology and employment 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 period for TikTok’s approaching restriction, sending waves throughout the innovation sector, both in the United States and abroad.

Energy, climate, and health. The president likewise withdrew the United States from the Paris Climate Agreement and the World Health Organization, putting an early focus on American energy independence and far from the previous administration’s global sustainability efforts.

Steps internal counsel ought to think about:

– Assess the impact of prospective tariff boosts on supply chain and service continuity.

– Assess the company’s dependence on social media platforms, such as for marketing functions, and the prospective requirements to backup social networks data and assets in case their chosen platform ceases to be available.

– Consider how developments in the new administration’s technique to ecological, sustainability and governance problems may affect the company’s ESG strategy.

Disclaimer: The details in any resource in this website must not be interpreted as legal recommendations or as a legal opinion on specific realities, and should not be thought about representing the views of its authors, its sponsors, and/or ACC. These resources are not intended as a definitive declaration on the subject resolved. Rather, they are planned to serve as a tool offering useful assistance and referrals for the hectic internal specialist and other readers.