Remind me, what’s an executive order?

Executive orders are regulations bought by the president of the United States that direct government companies and officials to take particular actions. While they are not laws, they have the force of law and impact how existing laws are executed or enforced.

Executive orders affect the agencies of the executive branch and for that reason do not require the approval of Congress. They should be within the president’s constitutional authority and may be challenged in court if considered unconstitutional.

Executive orders may be rescinded, overturned by future presidents, or challenged in court, and enforcement concerns can alter throughout any administration.

The new administration’s actions have far-reaching results beyond executive orders. For more on mitigating threat, international organizations can take new opportunities 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 different previous executive orders and memoranda, including Executive Order 11246 (EO 11246) signed in 1965 by President Lyndon B. Johnson.

EO 11246 needed every federal government contract to include a declaration that the professional will not discriminate against any employee or applicant for work based upon race, creed, 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 may be altering enforcement concerns in the new administration. The order directs all federal companies to “combat unlawful 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 office, pointing to his record of “suing corporations who use ‘woke’ policies to discriminate against their employees.”

In addition to withdrawing EO 11246, the Jan. 21 executive order advises each company of the federal government to identify “approximately nine potential civic compliance examinations” of economic sector entities within 120 days of the order - by May 21, 2025.

The economic sector entities based on these examinations include openly traded corporations, large nonprofits - including bar associations - large structures, and universities whose endowments surpass US$ 1 billion.

Organizations that may be targeted should ask:

- What is my company’s danger tolerance?
- How will workers respond to the company’s actions?
- How will customers and stakeholders respond?
What internal counsel should think about:

Assess any federal agreements and grants

- Determine if they contain any terms or conditions associated with DEI that may contrast with present laws and policies
Review your company’s existing DEI policies to comprehend your danger

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

- Hiring and recruitment processes
- Performance evaluations and promo choices
- Training products and attendance records
- Any changes to DEI policies
Implications for federal contractors

Among other procedures, the Jan. 21 Executive Order requires the heads of federal agencies to include specific terms in every agreement or grant award:

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