Yesterday, President Trump issued an Executive Order aimed at ending Diversity Equity and Inclusion (DEI) efforts by federal and private employers.: Ending Illegal Discrimination And Restoring Merit-Based Opportunity – The White House
In the federal sector, the Order dismantles the federal contractor affirmative action program and bars the Office of Federal Contract Compliance Programs from pushing contractors to balance their workforce based on race, color, sex, sexual preference, religion, or national origin.
But there is a private sector impact too: The Executive Order also directs the Attorney General to consult with government agencies and submit within 120 days a report “containing recommendations for enforcing federal civil-rights laws and taking other appropriate measures to encourage the private sector to end illegal discrimination and preferences, including DEI.” The report is supposed to contain a proposed strategic enforcement plan that identifies the following:
- The “most egregious and discriminatory DEI practitioners in each sector of concern”
- A plan of specific steps or measures to deter DEI programs or principles, including identifying up to 9 potential civil compliance investigations of publicly traded corporations, large non-profit corporations or associations, foundations with assets of $500 million or more, State and local bar and medical associations, and institutions of higher education with endowments over $1 billion
- Other strategies to encourage the private sector to end DEI discrimination and preferences;
- Litigation that would be potentially appropriate for federal lawsuits, intervention and potential regulatory action and sub-regulatory guidance.
Legal challenges to DEI measures were already on the rise, and it remains to be seen what agency enforcement actions will be prioritized under the new administration. Employers should remain mindful of continuing to comply with their obligations under federal, state and local employment discrimination laws as they continue their diversity, equity and belonging initiatives in the workplace.