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On January 21st, 2025, President Donald Trump signed the executive order “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” (EO). Generally, the EO aims to end illegal diversity, equity, and inclusion programs. Additionally, illegal diversity, equity, inclusion, and accessibility practices are also mentioned. Altogether, these programs are known as “DEI.” The current administration believes that DEI programs promote discrimination within the ranks of a business. Previously, back in November 2024, the Equal Employment Opportunity Commission (EEOC) reported that it had doubled its efforts in responding to systemic discrimination claims.
Overview of the New Executive Order
The EO was signed one day after the President signed several orders regarding DEI. Specifically, the EO instructs federal agencies to take action to end what the administration considers “illegal” DEI in federal contracting. The EO also directs federal agencies to encourage private employers to eliminate illegal DEI practices.
Explicitly, the EO states: “It is the policy of the United States to protect the civil rights of all Americans and to promote individual initiative, excellence, and hard work. I therefore order all executive departments and agencies to terminate all discriminatory and illegal preferences, mandates, policies, programs, activities, guidance, regulations, enforcement actions, consent orders, and requirements.”
According to Jackson Lewis, the new EO does not change any existing law involving discrimination. This includes current laws in contracting, employment, or in general.
Revocation of Executive Order 11246
The main action of the new EO was to eliminate the current Executive Order 11246 (EO 11246). Previously issued in 1965, EO 11246 required affirmative action and prohibited federal contractors from discriminating based on the following:
- race,
- color,
- religion,
- sex,
- sexual orientation,
- gender identity, or
- national origin.
Contractors were also prohibited from discriminating against applicants or employees because they inquired about, discussed, or disclosed their compensation or that of others.
Subsequently, the new EO makes it illegal for federal contractors to consider race, color, sex, sexual preference, religion, or national origin in their employment, procurement, or contracting practice. However, new language was added to prohibit that behavior when it only violates the “Nation’s civil rights laws.” Currently, the main civil rights laws are included within Title VII of the Civil Rights Act (Title VII).
Employer Takeaways
In conclusion, even though the new EO is focused on federal contractors, all employers must be aware of its implications. As has been noted, the EO has not changed any current law relating to employment discrimination. Instead, it focuses on increased investigation and enforcement of what the government considers “illegal” DEI programs. To that extent, all employers should review their policies to verify compliance with Title VII.
To assist employers in training workers on forms of harassment and discrimination that could occur in the workplace, WorkWise Compliance created the Harassment & Discrimination Prevention Training eLearning Module for Employees. In addition to explaining harassment and discrimination, the training module describes preventing such actions and addresses ways to report complaints. For employers in California and New York, the following harassment and discrimination prevention trainings need to be utilized where appropriate:
