Since taking office, President Trump issued numerous executive orders, many of which affect private and public employers. For those unfamiliar with the process, in general, an executive order is a mandatory directive issued by the President of the United States for Executive Branches that manage operations of the federal government.

Employers should be aware of recent executive orders and other guidance issued in January 2025 that may affect operations. Listed below are a few pertinent directives that may affect you:

1. Rescission of Affirmative Action Requirements for Federal Contractors
On January 21, 2025, President Trump signed an executive order titled "Ending Illegal Discrimination and Restoring Merit-Based Opportunity," which revoked Executive Order 11246. This effectively ended the requirement that federal government contractors must undertake and report on affirmative action programs (AAP) meant to address diversity, equity, and inclusion (DEI) efforts for women and minorities. In addition, each contractor will have to “certify that it does not operate any programs promoting DEI that violate any applicable Federal anti-discrimination laws.” Federal contractors have up to 90 days, April 21, 2025, to comply with this order.

Note that under both federal and state law, employers are prohibited from discriminating against any individual in a protected class when making employment decisions. This means that employers should never make employment decisions based on race, gender, etc. The executive order affects AAP and reporting requirements but does not change any anti-discriminatory or equal protection laws.

Also note that requirements under Section 503 of the Rehabilitation Act of 1973, which applies to individuals with disabilities, and the Vietnam Era Veterans’ Readjustment Act of 1974, which applies to protected veterans, still apply.

2.  Ending Illegal DEI Discrimination Preferences for Private Employers
On January 21, 2025, President Trump signed an executive order titled "Ending Illegal Discrimination and Restoring Merit-Based Opportunity," ordering federal agencies to “combat illegal private-sector DEI preferences, mandates, policies, programs, and activities.” As of the publication of this article, it is unclear what constitutes “illegal private-sector DEI” actions; however, agencies are directed to provide reports to the Trump Administration within 120 days of the order so that appropriate policies will be implemented.

Also included in this reporting requirement is an obligation for agencies to identify up to nine (9) large publicly traded corporations or associations that are potentially subject to civil compliance investigations.

3.  Stopping all OFCCP Enforcement Activities
On January 24, 2025, the Acting Secretary of Labor ordered the Department of Labor and the Office of Federal Contract Compliance Programs (OFCCP) to cease all investigations and enforcement activities under the now rescinded Executive Order 11246. All businesses impacted should have been notified by January 31, 2025. Businesses currently under investigation, subject to pending cases, or conciliation agreements should contact their legal counsel for guidance.

4.  Recognition of Two (2) Sexes
On January 20, 2025, President Trump signed an Executive Order titled, “Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government” that mandates the federal government to recognize two biological sexes (male and female) as determined at conception. In addition, on January 28, 2025, the U.S. Equal Employment Opportunity Commission (EEOC) Acting Chair announced that the EEOC will return “to its mission of protecting women from sexual harassment and sex-based discrimination in the workplace by rolling back the Biden administration’s gender identity agenda,” in part by defending “the biological and binary reality of sex and related rights, including women’s rights to single-sex spaces at work.”

Based on this information, employers should take caution when addressing any federal requirements relating to gender, including gender reporting, such as the EEO-1 reports, and employee concerns regarding gender identity, including restroom access, discrimination, and religious accommodations.

5.  Immigration Changes
Several executive orders were issued by President Trump regarding immigration initiatives, which will affect employers by increasing the likelihood of an immigration raid or Form I-9 audit in the workplace, or weakening the pool of employees due to stricter visa requirements. President Trump also issued an executive order to limit birthright citizenship to newborns with at least one parent who is a U.S. citizen or Legal Permanent Resident. The executive order regarding birthright citizenship is currently blocked by a federal judge.

Employers should be prepared for an immigration raid or Form I-9 audit by ensuring compliance with Form I-9 requirements, conducting internal audits, training staff to quickly and properly respond to a Notice of Inspection from the Department of Homeland Security, and review immigration policies for any employees holding visas.

6.  Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs
On January 27, 2025, President Trump issued a Memorandum directing all federal agencies to temporarily pause federal funding and review if those federal funds comply with the newly issued executive orders. It was expected to become effective January 28, 2025.

For now, this Memorandum is on hold due to a federal judge blocking enforcement and the pause in federal funding while a hearing was scheduled for February 3, 2025, to determine the Memorandum’s future.

7. Rescinding the “Right of First Refusal” for Certain Federal Contractors
Under the Biden Administration, federal contractors with service contracts exceeding $250,000 were required to provide job offers to some employees of the preceding contractor. On January 20, 2025, President Trump rescinded this requirement under Executive Order 14055, which now allows these federal contractors to hire employees without offering the position to their predecessor’s employees.

Next Steps:

• Employers should monitor executive orders and guidance from applicable government agencies to stay informed of any changes.
• Employers should review their affirmative action and/or DEI programs to identify policies that may conflict with President Trump’s executive orders or may be subject to investigations by government agencies.
• Employers should review their restroom policies and any policies affected by gender and gender identity to identify any requirements that may conflict with President Trump’s executive orders and the EEOC’s mission.
• Employers should review their Form I-9 procedures, conduct internal audits of Form I-9, and prepare staff for a potential raid or audit.
• It is a good time to work with your legal counsel to strategize and prepare for changing compliance requirements applicable to your company.

Businesses should note that the orders listed above are only a few key ones that may impact you. In addition, the executive orders may face legal changes and require further guidance from agencies within the next 90 days. HEC will continue to monitor this situation and provide updates as appropriate.

Please note the information provided is for informational purposes only and may not reflect the most current regulatory developments.  We strive to keep our materials up to date, but there may be occasions when information becomes outdated.  Users are encouraged to verify the applicability of the content before relying on it for decision-making.  If you have any questions or concerns regarding the accuracy or relevance of the information, please contact us directly for assistance.

Join us for an engaging discussion on February 21, 2025, exploring the latest executive orders issued by President Trump and their potential ripple effects on federal agencies such as the National Labor Relations Board (NLRB), Equal Employment Opportunity Commission (EEOC), Department of Labor (DOL), Office of Federal Contract Compliance Programs (OFCCP), and Immigration and Naturalization Service (INS).

Navigating Recent Executive Orders: Implications for Federal Agencies and Consideration for Employers
Date: February 21, 2025
Time: 10:30 am - 12:00 pm
Location: ZOOM