Corporate diversity, equity, and inclusion (DEI) programs have expanded significantly for at least the last decade, particularly in the last five years. The hiring of DEI professionals has increased, and DEI priorities have become integral to company mission statements, strategic plans, and marketing materials. However, since taking office, the Trump administration has made its interest in curtailing DEI programs across public and private sectors clear. In furtherance of this objective, President Trump issued Executive Order 14173 on January 20, 2025, titled "Ending Illegal Discrimination and Restoring Merit-Based Opportunity." Additionally, the U.S. Equal Employment Opportunity Commission (EEOC) is under new leadership and has shifted its priorities, further influencing how employers should approach DEI and compliance.

Understanding Trump's DEI Executive Order

Executive Order 14173 rescinds affirmative action and nondiscrimination requirements under previous executive orders and mandates that federal contractors and grantees certify they do not operate any "illegal" DEI programs. U.S. District Judge Adam Abelson briefly blocked this executive order nationwide. However, the U.S. Court of Appeals for the Fourth Circuit lifted the block on March 14, 2025.

Compliance with this executive order is crucial for businesses receiving government funding. Employers must ensure that their DEI programs do not engage in practices that could be construed as discriminatory under Title VII. They must certify their compliance with these standards, opening themselves up to potential criminal prosecution if found in violation. While what constitutes an unlawful DEI program under Executive Order 14173 is fact-specific and requires interpretation, policies involving quotas or preferences based on race, gender, or other protected characteristics will likely be scrutinized most heavily.

EEOC Priorities Under Trump Administration

Since President Trump took office, the EEOC, the federal agency tasked with enforcing laws against discrimination and harassment, investigating complaints, and working to prevent discrimination, has also shifted its focus. On January 21, 2025, President Trump appointed Andrea R. Lucas as the EEOC's acting chair. Newly appointed Commissioner Lucas has noted a top priority as "rooting out unlawful DEI-motivated race and sex discrimination."

This shift aligns with the administration's broader efforts to dismantle DEI programs perceived as discriminatory.

Best Practices for Private Employers

Given these changes, private employers should take proactive steps to ensure compliance and protect their DEI initiatives:

Review and Revise DEI Programs: Ensure that DEI initiatives do not engage in practices that could be seen as discriminatory.
Conduct Regular Audits: Regularly audit DEI programs and policies to ensure compliance with Title VII and other relevant laws.
Document Compliance Efforts: Document thoroughly all compliance efforts, including training, policy changes, and audits.
Stay Informed: Keep abreast of any further changes in regulations and EEOC priorities to adapt quickly and effectively.

By understanding and adapting to these regulatory changes, private employers can continue to promote diversity and inclusion while ensuring compliance with federal laws.

An attorney with an entrepreneurial mindset, Sarah Sawyer helps businesses of all sizes navigate their legal issues, mitigate risk, and comply with federal and state laws. Her interdisciplinary experience in matters relating to business issues, employment law and legal disputes allows her to provide practical strategies that result in positive outcomes for her clients. She believes trust, based on honest and frank advice, is the basis of any successful client relationship.

member firms

Dannible & McKee, LLP

contacts

Christopher Didio

Michael J. Reilly

Victor W. Vaccaro, Jr.

Nicholas L. Shires

publications

Dannible & McKee announces new Partner