2025 uS Executive Orders, DEI, and Employment: how In-house Lawyers can Assist the Business

Remind me, what’s an executive order?

Executive orders are directives bought 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 implemented or enforced.

Executive orders affect the firms of the executive branch and for that reason do not need the approval of Congress. They need to be within the president’s constitutional authority and might be challenged in court if deemed unconstitutional.

Executive orders might be rescinded, overturned by future presidents, or challenged in court, and enforcement priorities can alter during any administration.

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

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

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

EO 11246 required every federal government agreement to consist of a statement that the professional will not victimize any worker or applicant for employment based on race, creed, color, or national origin.

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

However, the executive order signals that there may be changing enforcement concerns in the brand-new administration. The order directs all federal firms to “combat illegal 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, indicating his record of “suing corporations who utilize ‘woke’ policies to discriminate versus their employees.”

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

The personal sector entities based on these examinations consist of openly traded corporations, big nonprofits – including bar associations – big foundations, and universities whose endowments go beyond US$ 1 billion.

Organizations that may be targeted should ask:

– What is my organization’s danger tolerance?

– How will workers react to the company’s actions?

– How will clients and stakeholders react?

What internal counsel must think about:

Assess any federal agreements and grants

– Determine if they include any terms or conditions related to DEI that may conflict with existing laws and policies

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

– Prepare for increased scrutiny and possible civil compliance examinations

Document, job document, file

– Hiring and recruitment procedures

– Performance assessments and promotion decisions

– Training materials and participation records

– Any changes to DEI policies

Implications for federal professionals

To name a few measures, 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 contractual 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 decisions for purposes of section 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 violate any relevant 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 government in order to affect the payment or job receipt of cash or property.

The accreditation requirement carries a potential threat of lawsuits for federal professionals under the False Claims Act. In-house lawyers at federal contractors therefore have a specific interest in ensuring their organization’s policies, procedures, practices, communications and material, are evaluated. Assess if modifications are required to alleviate the risk of lawsuits.

Executive orders targeting unlawful immigration

President Trump’s initial flurry of executive orders consisted of many – such as the Jan. 20 executive order “Protecting the American People Against Invasion” – focused on restricting prohibited immigration and deporting illegal immigrants. The orders require enforcement actions by federal agencies against unlawful migration.

In-house legal representatives need to think about reviewing their organization’s employment eligibility verification process. They may also wish to consider whether the organization is prepared for reacting to an I-9 audit or job a worksite enforcement action (or raid) by immigration enforcement firms.

Sectors that may be especially impacted include farming, hospitality, and other industries such as building. 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 a crucial function to play in developing and job making sure consistent application of the Form I-9 and E-Verify regulations the federal government utilizes 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 useful checklists of factors to consider relevant for internal legal representatives 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 risk that the company might start an I-9 audit if they felt a company was blocking their need to apprehend a non-citizen employee, or in many cases acquire a criminal warrant from a judge if actions support it.

Steps internal counsel need to consider:

– Determine the number of workers could potentially be impacted

– Review your company’s work eligibility verification procedure

– Ensure your company’s procedure is recorded and defensible

– Implement and impose clear policies

– Monitor legal advancements, including litigation and enforcement assistance

Mitigate threat, remain nimble, and seize brand-new opportunities

The current executive orders will considerably impact international services. Legal departments and internal counsel will need to assist their organizations comprehend and adjust to changes, ensuring compliance or litigating when appropriate.

A lot of the brand-new administration’s decisions will play out over the coming months, consisting of brand-new executive orders and job legal difficulties. The Docket will continue to keep track of developments. Global in-house attorneys need to prepare for rapid developments associated with:

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 previous 2 were both postponed by a month as the administration engages in . Meanwhile, China has begun its own vindictive measures on US goods. He had actually previously announced his intent to impose 25-percent intensifying tariffs on Colombia (an action that was eventually not taken).

Technology and intellectual property. One of the president’s very first actions was to rescind the previous administration’s AI executive order. The new administration also extended a grace period for TikTok’s upcoming ban, sending waves throughout the technology sector, both in the United States and abroad.

Energy, environment, and health. The president likewise 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 must think about:

– Assess the effect of prospective tariff boosts on supply chain and service connection.

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

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

Disclaimer: The information in any resource in this site need to not be construed as legal advice or as a legal viewpoint on specific realities, and must 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 attended to. Rather, they are intended to work as a tool providing useful guidance and references for the hectic in-house practitioner and other readers.