Remind me, what’s an executive order?

Executive orders are regulations ordered by the president of the United States that direct federal government companies and authorities to take specific actions. While they are not laws, they have the force of law and effect how existing laws are executed or enforced.

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

Executive orders may be rescinded, overturned by future presidents, or challenged in court, botdb.win and enforcement concerns can change throughout any administration.

The brand-new administration’s actions have significant impacts beyond executive orders. For more on mitigating threat, global companies can seize brand-new chances by staying active.

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 numerous previous executive orders and memoranda, including Executive Order 11246 (EO 11246) signed in 1965 by President Lyndon B. Johnson.

EO 11246 needed every government contract to include a statement that the professional will not victimize any staff member or applicant for employment based upon race, creed, color, or national origin.

Despite President Trump’s new executive order, the underlying federal anti-discrimination law stays unchanged for private-sector workers.

However, the executive order signals that there may be changing enforcement concerns in the new administration. The order directs all federal firms to “fight prohibited 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 workplace, indicating his record of “suing corporations who use ‘woke’ policies to victimize their workers.”

In addition to revoking EO 11246, the Jan. 21 executive order advises each firm of the federal government to determine “up to 9 potential civic compliance examinations” of economic sector entities within 120 days of the order - by May 21, 2025.

The economic sector humanlove.stream entities subject to these investigations include openly traded corporations, large nonprofits - consisting of bar associations - large structures, and universities whose endowments exceed US$ 1 billion.

Organizations that may be targeted should ask:

- What is my organization’s threat tolerance?
- How will employees react to the business’s actions?
- How will clients and stakeholders react?
What internal counsel should think about:

Assess any federal agreements and grants

- Determine if they consist of any terms or conditions related to DEI that may contrast with current laws and policies
Review your organization’s existing DEI policies to comprehend your threat

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

- Hiring and recruitment processes
- Performance examinations and promotion choices
- Training materials and presence records
- Any changes to DEI policies
Implications for federal contractors

To name a few measures, the Jan. 21 Executive Order requires the heads of federal agencies to include specific terms in every agreement or grant award:

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