On January 21, 2025, President Trump issued an Executive Order titled: “Ending Illegal Discrimination and Restoring Merit Based Opportunity.”
The Executive Order targets DEI programs in the private sector. Below is a summary of the highlights and some quotes of key provisions.
🔚 “Encouraging the Private Sector to End Illegal DEI Discrimination and Preferences. (a) The heads of all agencies, with the assistance of the Attorney General, shall take all appropriate action with respect to the operations of their agencies to advance in the private sector the policy of individual initiative, excellence, and hard work identified in section 2 of this order.”
The Executive Order directs federal agencies to enforce “Federal civil-rights laws and [take] other appropriate measures to encourage the private sector to end illegal discrimination and preferences, including DEI.”
In short, private sector employers have exposure just by virtue of having a DEI program.
To be clear, the Executive Order doesn’t say that DEI programs as whole are invalid. However, employers with DEI programs that do not violate federal civil rights laws may find themselves defending those programs against action from the federal government.
🤷🏻♂️ What Should Employers Do❓
1️⃣ Employers, especially large-scale employers, need to ask the question “is it worth to even continue with a DEI program?” This is a case of “read the room.” The current administration is telling employers that is coming for DEI programs. So, it’s irresponsible to not at least ask whether the exposure associated with having a program is worth it.
2️⃣ If an employer answers the above in the affirmative, then the employer needs to ensure that its DEI program complies with federal civil rights laws. The attached Executive Order takes specific aim at DEI programs that prioritize sex and race over merit.
👀 Bottom Line
The attached Executive Order is a massive shift in policy. Employers with DEI programs should brace for things like compliance investigations and the like. If you’re an employer that is going to maintain a DEI program, it’s critical to get ahead and review the program now for federal law compliance. Don’t wait for a federal agency’s knock 🚪 on your door.