Remind me, what’s an executive order?

Executive orders are instructions purchased by the president of the United States that direct federal government agencies 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 therefore do not need the approval of Congress. They need to be within the president’s constitutional authority and may be challenged in court if considered unconstitutional.

Executive orders may be rescinded, reversed by future presidents, or challenged in court, and enforcement priorities can alter during any administration.

The brand-new administration’s actions have significant effects beyond executive orders. For more on mitigating threat, international organizations can seize new opportunities by staying active.

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

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

EO 11246 needed every federal government agreement to consist of a statement that the professional will not discriminate versus any worker or candidate for work based on race, creed, employment color, or nationwide origin.

Despite President Trump’s brand-new executive order, the underlying federal anti-discrimination law remains the same for private-sector staff members.

However, the executive order signals that there might be changing enforcement concerns in the brand-new administration. The order directs all federal companies to “fight unlawful private-sector DEI preferences, mandates, policies, programs, and activities.”

In December 2024, President-elect Trump tapped Harmeet K. Dhillon to lead the Justice Department’s civil liberties office, pointing to his record of “taking legal action against corporations who utilize ‘woke’ policies to victimize their employees.”

In addition to withdrawing EO 11246, the Jan. 21 executive order instructs each agency of the federal government to identify “as much as 9 possible civic compliance examinations” of private sector entities within 120 days of the order - by May 21, 2025.

The private sector entities subject to these investigations include publicly traded corporations, big nonprofits - including bar associations - big foundations, and universities whose endowments surpass US$ 1 billion.

Organizations that may be targeted should ask:

- What is my company’s threat tolerance?
- How will employees react to the company’s actions?
- How will customers and stakeholders respond?
What internal counsel needs to believe about:

Assess any federal agreements and grants

- Determine if they contain any terms or conditions related to DEI that may conflict with present laws and employment guidelines
Review your company’s existing DEI policies to understand your threat

- Prepare for increased analysis and prospective civil compliance investigations
Document, document, document

- Hiring and recruitment procedures
- Performance evaluations and promo decisions
- Training materials and participation records
- Any changes to DEI policies
Implications for federal professionals

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

- “A term requiring the legal counterparty or grant recipient to concur that its compliance in all aspects with all relevant Federal anti-discrimination laws is product to the government’s payment decisions for functions of area 3729( b)( 4) of title 31, United States Code”