Diversity, equity, inclusion (“DEI”) and diversity, equity, inclusion, and accessibility (“DEIA”) policies have become standard in many workplaces. They help employers create a more diverse, equitable, inclusive, and accessible environment while complying with state and federal civil rights laws. The Trump Administration is now attacking these policies.

On January 20 and 21, 2025, President Trump signed two Executive Orders that could severely impact these policies:  Ending Radical and Wasteful Government DEI Programs and Preferencing and Ending Illegal Discrimination and Restoring Merit-Based Opportunity. While these Executive Orders are primarily aimed at the federal government and federal contractors, they also impact private employers with DEI and DEIA initiatives.

Here’s what these changes could mean for your workplace, and why now is the time to take a closer look at your policies.

What has changed?

1. Federal DEI staff placed on leave: President Trump’s January 20th Executive Order directs federal DEI staff to be placed on paid leave, with layoffs to follow.

2. Affirmative action policies rescinded: Federal contractors are no longer required to promote affirmative action or maintain diversity programs.

3. Historic policies revoked: The January 21st order rolls back decades of diversity-focused Executive Orders, including those strengthening the Equal Employment Opportunity Act.

4. Private employers under scrutiny: The Executive Orders also encourage investigations into private companies with DEI and DEIA programs, signaling increased oversight.

Whom does this affect?

1. Federal contractors: Businesses with government contracts must revise their policies to meet the new rules.
2. Private employers with DEI programs: Companies with diversity-focused policies may face scrutiny, even if their intention is to prevent discrimination.
3. Note: Any business making changes to their DEI and DEIA policies must ensure they stay compliant with federal and state anti-discrimination laws, like Title VII of the Civil Rights Act.

What should employers watch out for?

1. Legal risks:  Cutting DEI programs without a proper review can lead to violations of anti-discrimination laws.

2. Increased claims: Employees may see these Executive Orders as an opening to claim reverse discrimination based on race (white) and/or gender (male). Employees also may cite any changes to DEI policies as evidence of bias or discrimination, especially if issues arise around promotions, pay, or employment terminations.

3. Hiring and retention challenges: DEI programs often play a key role in attracting and keeping diverse talent. Removing them could have an unintended, disparate impact on minorities and other protected classes.

4. Policy clarity: If you reduce or revise your DEI efforts, be sure to clearly document how your practices remain non-discriminatory.

If you haven’t reviewed your workplace policies in a while, now is the time to do so. Regularly updating your employee handbook ensures you’re keeping up with changes in the law and workplace trends.

Take action now!

If you’re unsure how these changes affect your workplace or need help reviewing your policies, give us a call at 973.787.8442  or email us at legaladmin@alixrubinlaw.com.

This blog is for informational purposes only. It is not offered as legal advice, nor is it intended to create an attorney-client relationship with any reader. Consult with competent local employment counsel to determine how the matters addressed here may affect you.

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