Navigating DEI Initiatives Amid President Trump’s Executive Order
On January 21st, 2025, President Trump issued a wide-sweeping Executive Order titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” (“Executive Order”) to address diversity, equity, and inclusion (“DEI”) initiatives within the federal government. The Executive Order also has significant implications for private-sector employers. This is a rapidly evolving change to the law and we will continue to monitor the Executive Order and its implications. But here’s what we know for now:
President Trump’s Executive Order seeks to eliminate discrimination and preferences based on non-merit characteristics within the federal government. Although the Executive Order is specifically directed at federal agencies its impact extends to private employers, particularly those involved in federal contracting or receiving federal grants. Moreover, this Executive Order signals support for potential “reverse discrimination” claims and an inclination to scrutinize any private-sector decisions that are understood as providing preferences based on protected characteristics.
While the Executive Order does not directly impose new requirements on private employers, it revokes previous directives encouraging diversity and inclusion in federal contracting. Pursuant to the Executive Order, Federal contractors and subcontractors must now refrain from implementing workforce practices or policies that consider race, color, sex, sexual preference, religion, or national origin as factors in employment decisions.
Private-sector employers should review and revise their DEI programs in light of this Executive Order to ensure they do not prioritize protected characteristics over individual qualifications. Even programs that inadvertently create a perception of reverse discrimination may now be deemed non-compliant with the Executive Order and should be revised.
We recognize that navigating the complexities of DEI compliance in the wake of this Executive Order can be challenging. Our Employment Group is here to help if you have questions regarding compliance with the Executive Order or would like guidance on structuring programs that promote diversity and comply with the Executive Order.
