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On March 27th, 2025, the Northern District of Illinois (Court) granted a temporary restraining order (TRO) against DEI certification and termination provisions. Chiefly, these provisions were initially authorized by the Trump Administration’s Executive Orders (EOs) 14151 and 14173. Markedly, the DEI (Diversity, Equity, and Inclusion) Certification Provision TRO is nationwide and affects Department of Labor (DOL) grant recipients. Earlier in February, in response to EOs 14151 and 14173, Equal Employment Opportunity Commission (EEOC) Acting Chair Andrea Lucas announced an update to the agency’s gender ideology practices.
DEI Certification as Associated with Title VII of the Civil Rights Act of 1964
Generally, according to the EEOC, DEI is a broad term. In fact, the term is not defined in Title VII of the Civil Rights Act of 1964 (Title VII). Overall, Title VII prohibits employment discrimination based on protected characteristics such as race and sex. By and large, DEI certification is a credential awarded by an employer or training provider. The credential is mainly provided after an employee completes a specific training course. In this case, the course or program focuses on building and improving DEI in the workplace.
The agency, as directed by the two EOs, believes that under Title VII, workplace DEI initiatives may be unlawful if they involve employment actions motivated by an individual’s race, sex, or other protected characteristics. Specifically, these employment actions could include:
- hiring,
- firing,
- promotions/demotions,
- earning equal compensation and fringe benefits,
- access to or exclusion from training,
- mentoring, sponsorship, or workplace networking opportunities,
- the ability to complete internships,
- overall selection for job interviews, or
- the assignment to specific job duties or work assignments.
Therefore, the federal government believes that DEI certification could be illegal.
Overview of the Northern District of Illinois Decision
Consequently, Chicago Women in Trades (CWT), a nonprofit organization that advocates for women to enter traditionally male-dominated fields, filed suit in the district court. According to Littler, approximately 40% of CWT’s annual budget is funded by the federal government. In the original lawsuit, CWT claimed that the EOs violated its First and Fifth Amendment rights. The violations were mainly due to the possibility of funding being cut over the use of DEI certification. The fact that the non-profit primarily caters to women could also be seen as DEI discrimination.
Indeed, the Court found that CWT had standing in challenging both provisions. Specifically, under the certification provision, the Court believes that the non-profit will likely prevail because the provision attempts to regulate speech outside of federally funded programs. The exact language states that it would be illegal to create or continue “any programs promoting DEI.” The EO does not specify just federally funded organizations. There is also no stated definition of “DEI certification.”
As a result, the Court granted a temporary restraining order on both the Termination and Certification Provisions. Presently, however, the Certification Provision TRO is nationwide only and affects DOL grant recipients. The Termination Provision TRO is limited to CWT and any federal grantee where CWT holds a subcontract or is a subrecipient of federal funds.
Employer Takeaways
In conclusion, although the opinion and the resulting TRO are limited in scope, it does provide important guidance. Federal contractors and other recipients of federal funds may want to examine the information included in the Court’s ruling and try to pursue relief from the Trump Administration’s anti-DEI directives. On the opposite side of the argument, since everything seems to still be “up in the air,” companies may want to consult with their legal counsel to review current policies and remove any discriminatory practices related to DEI.
To assist employers in training their workers on forms of harassment and discrimination that may occur in the workplace, WorkWise Compliance has created the Harassment & Discrimination Prevention Training eLearning Module for Employees. In addition to explaining harassment and discrimination, the training module outlines strategies for preventing such actions and provides guidance on reporting complaints. For employers in California and New York, the following harassment and discrimination prevention trainings need to be utilized where appropriate:
