In the wake of recently issued Presidential Executive Orders, the landscape of Diversity, Equity, and Inclusion (DEI) programs in the private sector is facing some potentially significant changes. These orders, signed in the early days of the new administration, aim to dismantle various DEI initiatives across federal and private entities. Below is a brief overview of what employers need to know.
Executive Orders Overview
The Executive Orders target DEI programs by:
- Revoking longstanding DEI and affirmative action requirements for federal contractors.
- Directing public and private entities to end policies that, according to the new Executive Orders, constitute “illegal DEI discrimination.”
Impact on Private Sector
While these orders do not change existing discrimination statutes enforced under federal and state laws (e.g., protections under Title VII and California’s Fair Employment & Housing Act), they significantly increase scrutiny on DEI programs. Key points include:
- Federal agencies are now being tasked with rooting out “illegal discrimination and preferences,” as outlined in the Executive Orders.
- Federal contractors must now certify that their DEI programs comply with federal anti-discrimination laws.
Immediate Actions for Employers
Employers should consider the following steps to navigate these changes:
- Federal contractors should begin review existing contracts to ensure compliance with new certification requirements (i.e., that their DEI programs comply with federal anti-discrimination laws) and begin updating any standardized contract templates used internally to expedite the contracting process.
- With directives on enforcement and deterrence set out in the Executive Orders to encourage the private sector to fall-in-line, all employers should consider conducting company-wide DEI policy/procedures checks to assess and adjust DEI initiatives/programs to remain compliant with all federal civil-rights laws.
Future Considerations
The journey for DEI programs is just beginning, with expected court challenges and legislative actions. All employers need to stay informed and be proactive in managing their DEI initiatives effectively.
For assistance in evaluating existing DEI programs, policies, or procedures, employers should consult with legal counsel to ensure that DEI programs align with the new regulations and continue to foster an inclusive workplace.