{"id":8285,"date":"2025-01-30T12:13:03","date_gmt":"2025-01-30T17:13:03","guid":{"rendered":"https:\/\/employerdefensereport.com\/?p=8285"},"modified":"2026-03-20T11:59:08","modified_gmt":"2026-03-20T15:59:08","slug":"the-trump-administration-intends-to-take-hard-look-at-private-sector-dei-policies-with-investigations-possible-is-your-company-ready","status":"publish","type":"post","link":"https:\/\/www.connmaciel.com\/employer-defense-report\/the-trump-administration-intends-to-take-hard-look-at-private-sector-dei-policies-with-investigations-possible-is-your-company-ready\/","title":{"rendered":"The Trump Administration intends to take a hard look at private sector DEI policies, with investigations possible.  Is your company ready?"},"content":{"rendered":"<p>By <a href=\"https:\/\/www.connmaciel.com\/mark-ishu\" target=\"_blank\" rel=\"noopener\">Mark Ishu<\/a><\/p>\n<p>Shortly after aggressively terminating Diversity, Equity and Inclusion (\u201cDEI\u201d) policies that applied to the federal workforce, the Trump Administration turned its attention outward to the private sector. President Trump\u2019s January 22, 2025, Executive Order (\u201cEO\u201d) titled, <a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2025\/01\/ending-illegal-discrimination-and-restoring-merit-based-opportunity\/\">Ending Illegal Discrimination and Restoring Merit-Based Opportunity<\/a>, claims to \u201cprotect[] the civil rights of all Americans and expands individual opportunity by terminating radical DEI\u201d in the private sector.\u00a0 It enlists federal agencies, including the Attorney General (\u201cAG\u201d), to act swiftly to police \u201cDEI-based discrimination\u201d and preferencing in federal contracting and the private sector.<\/p>\n<blockquote><p>[T]he Attorney General, within 120 days of this order, in consultation with the heads of relevant agencies and in coordination with the Director of OMB, shall submit a report to the Assistant to the President for Domestic Policy 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\u00a0DEI.<\/p><\/blockquote>\n<p>EO at \u00a7 4(b).\u00a0 As part of the strategic enforcement plan required by the EO, each agency head \u201cshall<!--more--> identify up to nine potential civil compliance investigations of publicly traded corporations, large non-profit corporations or associations, foundations with assets of 500 million dollars or more, State and local bar and medical associations, and institutions of higher education with endowments over 1 billion dollars.\u201d<a href=\"#_ftn1\" name=\"_ftnref1\">[1]<\/a>\u00a0\u00a0<em>Id.\u00a0<\/em>at \u00a7 4(b)(iii).\u00a0 Most companies and not-for-profits may be targeted for an investigation by an agency head, though the focus will presumably be on \u201c[k]ey sectors of concern within each agency\u2019s jurisdiction,\u201d <em>id.\u00a0<\/em>at \u00a7 4(b)(i), and \u201c[t]he most egregious and discriminatory\u00a0DEI\u00a0practitioners in each sector of concern,\u201d\u00a0<em>id.\u00a0<\/em>at \u00a7 4(b)(ii). \u00a0\u00a0The Attorney General\u2019s report will also contain a \u201cproposed strategic enforcement plan,\u201d which identifies:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>\u201c\u2026specific steps or measures to deter DEI programs or principles (whether specifically denominated \u2018DEI\u2019 or otherwise);\u201d<\/li>\n<li>\u201cOther strategies to encourage the private sector to end illegal DEI discrimination and preferences and comply with all Federal civil-rights laws;\u201d<\/li>\n<li>\u201cLitigation that would be potentially appropriate for Federal lawsuits, intervention, or statements of interest;\u201d and<\/li>\n<li>\u201cPotential regulatory action and sub-regulatory guidance.\u201d<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>How Can You Prepare?\u00a0 \u00a0<\/strong><\/p>\n<p>The EO requires the AG to finalize the ordered report within 120 days, so there should be a grace period before these activities begin.\u00a0 In the interim, companies should evaluate their websites and other public-facing information, which discusses \u201cdiversity,\u201d \u201caffirmative action,\u201d or similar programs, as they could attract government attention.\u00a0 Companies also need to evaluate how this drastic policy shift will impact their hiring and must carefully document decisions to hire specific candidates.<\/p>\n<p>Conn Maciel Carey LLP has expertise in reviewing\u00a0DEI\u00a0programs and can help your organization put together a comprehensive plan to mitigate enforcement and other risks, including, for example, the threat of federal litigation. If you have questions about how this new EO affects your organization, please contact CMC\u2019s national <a href=\"https:\/\/www.connmaciel.com\/labor-and-employment\">Labor and Employment Practice Group<\/a>.<\/p>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\">[1]<\/a> Private-sector employment programs supporting U.S. military veterans are exempted from the directives of the Order.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Mark Ishu Shortly after aggressively terminating Diversity, Equity and Inclusion (\u201cDEI\u201d) policies that applied to the federal workforce, the Trump Administration turned its attention outward to the private sector. President Trump\u2019s January 22, 2025, Executive Order&hellip;<\/p>\n","protected":false},"author":26,"featured_media":8289,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[815],"tags":[909,821],"class_list":["post-8285","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discrimination-harassment-retaliation","tag-agency-investigations-audits","tag-workplace-equity"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Trump Administration intends to take a hard look at private sector DEI policies, with investigations possible. 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