Businesses of all sizes have implemented Diversity, Equity, and Inclusion (DEI) programs, policies, and initiatives within their workplace. However, as a result of a new executive order from the Trump Administration in early 2025, programs and initiatives involving DEI practices have been put into question for many employers due to changes made at the federal level. To reaffirm the legal status of DEI programs in business, the EEOC has put out a press release specifying the legality of DEI programs.
When evaluating DEI and how initiatives are being implemented, employers must navigate the topic with care and ensure they avoid potential penalties that may arise if certain policies are deemed unlawful. Here is what you need to know about the current status of DEI in 2025 and how your business should move forward.
DEI policies are intended to create equal job opportunities and a fair / inclusive working environment.
Common aspects that businesses focus on regarding DEI policies and initiatives include:
However, it’s important to note that DEI does not have a definite legal definition according to the EEOC.
On January 21st, 2025, President Trump signed Executive Order 14173, which is designed to combat DEI practices on the federal level and question practices amongst private sector employers, in order to restore merit-based opportunities. As such, the statement includes details regarding what is being targeted and the plan for ending DEI programs.
The Trump Administration’s efforts in ending DEI practices target specific DEI objectives. The executive order specifically urges agencies and staff under the Trump Administration to:
Programs enacted through statutes or regulations that counter continuous discriminatory practices will still be in effect. These programs include:
DEI is a broad term that is not defined in Title VII of the Civil Rights Act, a federal law that prohibits employment discrimination. Generally, Title VII is unaffected by the DEI Executive Order.
However, as a result of the executive order, DEI initiatives, policies, programs, or practices under Title VII may be unlawful if they involve:
To further highlight the differences between Title VII and DEI policies and programs, it’s important to note that the following are still in effect as federal law under Title VII despite the executive orders on DEI:
To get a better understanding of what is included in Title VII, more information on Title VII is provided on the US Department of Justice website.
While federal agencies have already taken action to roll back DEI entirely, many private sector companies that have implemented previous DEI-related practices are also proactively starting to roll them back in preparation and direct response to what is outlined in the executive order: threatened legal action against companies with DEI initiatives. Some examples of large employers scaling back DEI include Amazon, Google, and Goldman Sachs.
Many of these companies that plan to or have already begun rolling back DEI-related practices are doing so due to the following:
When assessing the inherent risks associated with DEI, companies should remain cautious when considering adding or continuing DEI-related practices. However, for companies going forward with DEI programs, ensure your company understands how to navigate the legality of DEI and evaluate if the program can be considered unlawful by referring to the specifications detailed in the executive order.
To help safeguard your DEI initiatives, review that your company does not:
Regardless of how your business plans to tackle the new DEI executive order, understanding the ins and outs of DEI management while balancing other workforce duties can be challenging, especially when considering the risks associated with DEI initiatives. Contacting an HR outsourcing company can help your business safely navigate DEI and provide the advice you need to move forward. If your business needs guidance on how to navigate its DEI situation, contact us today.