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 regulations bought by the president of the United States that direct government firms and authorities to take specific actions. While they are not laws, they have the force of law and impact how existing laws are implemented or imposed.

Executive orders affect the firms of the executive branch and therefore do not require the approval of Congress. They must be within the president’s constitutional authority and might be challenged in court if deemed unconstitutional.

Executive orders may be rescinded, reversed by future presidents, or challenged in court, and enforcement priorities can alter during any administration.

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

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

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

EO 11246 required every government contract to consist of a declaration that the contractor will not discriminate against any staff member or candidate for work based on race, creed, color, or national origin.

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

However, the executive order signals that there may be changing enforcement priorities in the brand-new administration. The order directs all federal companies 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 liberties workplace, employment pointing to his record of “suing corporations who utilize ‘woke’ policies to discriminate against their workers.”

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

The private sector entities based on these examinations consist of publicly traded corporations, large nonprofits – consisting of 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 business’s actions?

– How will customers and stakeholders react?

What in-house counsel must believe about:

Assess any federal contracts and grants

– Determine if they contain any terms or conditions associated with DEI that might contrast with present laws and guidelines

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

– Prepare for increased scrutiny and prospective civil compliance examinations

Document, document, document

– Hiring and recruitment processes

– Performance assessments and promotion decisions

– Training products and attendance records

– Any changes to DEI policies

Implications for federal specialists

To name a few measures, the Jan. 21 Executive Order requires the heads of federal agencies to consist of particular terms in every agreement or grant award:

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

– “A term needing such counterparty or recipient to license that it does not operate any programs promoting DEI that breach any appropriate 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 receipt of cash or property.

The certification requirement brings a prospective danger of lawsuits for federal professionals under the False Claims Act. In-house legal representatives at federal professionals thus have a particular interest in ensuring their organization’s policies, procedures, practices, communications and content, are reviewed. Assess if modifications are required to alleviate the danger 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” – aimed at restricting prohibited immigration and deporting unlawful immigrants. The orders call for enforcement actions by federal agencies against illegal immigration.

In-house legal representatives ought to consider examining their company’s work eligibility verification process. They might also desire to consider whether the company is prepared for reacting to an I-9 audit or a worksite enforcement action (or raid) by immigration enforcement firms.

Sectors that may be particularly affected 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 work in hospitality, representing 7.1 percent of the labor force.

In-house counsel have an essential role to play in establishing and guaranteeing 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., employment in a 2024 ACC Docket short article.

Have a look at useful checklists of factors to consider pertinent for in-house lawyers on the subject of I-9 audits and worksite enforcement actions.

If a company does not comply with a civil administrative warrant provided by US Immigration and Customs Enforcement (ICE), there is a risk that the agency might start an I-9 audit if they felt a company was blocking their requirement to detain a non-citizen worker, or in some cases acquire a criminal warrant from a judge if actions support it.

Steps in-house counsel ought to consider:

– Determine the number of staff members might potentially be affected

– Review your company’s work eligibility verification procedure

– Ensure your company’s procedure is documented and defensible

– Implement and implement clear policies

– Monitor legal developments, including litigation and enforcement guidance

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

The current executive orders will considerably affect worldwide companies. Legal departments and internal counsel will need to help their organizations understand and adjust to changes, guaranteeing compliance or litigating when suitable.

Much of the brand-new administration’s choices 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 attorneys need to prepare for rapid developments 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 additional tariffs on imports from China. The previous two were both postponed by a month as the administration participates in settlements. Meanwhile, China has started its own vindictive procedures on US goods. He had formerly revealed his intent to enforce 25-percent intensifying tariffs on Colombia (an action that was eventually not taken).

Technology and home. One of the president’s first actions was to rescind the previous administration’s AI executive order. The new administration likewise extended a grace period for TikTok’s impending ban, sending 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 focus on American energy independence and away 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 business connection.

– Assess the organization’s dependence on social media platforms, such as for marketing functions, and the prospective requirements to backup social networks information and employment possessions in the event their preferred platform ceases to be offered.

– Consider how advancements in the new administration’s technique to ecological, sustainability and governance issues might affect the organization’s ESG strategy.

Disclaimer: The information in any resource in this website need to not be construed as legal recommendations or as a legal viewpoint on particular truths, and need to not be considered representing the views of its authors, its sponsors, and/or employment ACC. These resources are not planned as a definitive declaration on the subject resolved. Rather, they are planned to work as a tool offering useful guidance and referrals for the busy internal specialist and other readers.