In only his first week in office, Trump has already dismantled DEI programs within the government, revoked a 60-year old order requiring federal contractors to develop affirmative action programs, and signaled to private-sector employers that their DEI programs are next.  

DEI within the government

Trump issued an executive order on January 20, 2025, terminating all government DEI programs, including DEI policies, programs, preferences, and activities in the federal government. This order directs the Director of the Office Personnel Management (OPM), with assistance by the Attorney General, to review and revise all existing federal employment practices, union contracts, and training policies and programs to comply with the order. With regard to the federal government’s employment practices, the order mandates rewarding “individual initiative, skills, performance, and hard work” without consideration of DEI factors, goals, policies, mandates, or requirements.

The next day, the OPM issued a memo that instructed federal agency heads to inform their employees that government DEI offices were being closed and their employees were being placed on administrative leave and ultimately laid off within sixty days. The OPM’s memo also required that agencies take down all websites, social media accounts, and other public-facing media related to DEI.

DEI requirements for federal contractors

On January 21, 2025, Trump issued another order mandating DEI requirements, which the order describes as “immoral race- and sex- based preferences,” be removed from federal contractor programs. This order revoked an executive order issued in 1965 by President Lyndon Johnson that required companies doing business with the federal government to develop affirmative action programs and tasked the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) with auditing and investigating federal contractors for compliance with the same. Trump’s new order banning race and gender preferences makes it clear that it does not apply to preferences for military veterans and individuals with disabilities.

DEI preferences and programs for private employers

Not only does Trump’s order target federal contractors, the order sends a warning to private employers to end “illegal DEI” discrimination and preferences and take action to advance “the policy of individual initiative, excellence, and hard work.” The order directs federal agencies to “combat illegal private-sector DEI preferences, mandates, policies, programs, and activities.”  To that end, the order requires the Attorney General, in consultation with the heads of federal agencies, to submit a report containing a proposed strategic enforcement plan identifying:

  • The most egregious and discriminatory DEI practitioners;
  • Specific steps to deter DEI programs/principles that constitute illegal discrimination or preferences;
  • Potential civil compliance investigations of certain private sector companies, including publicly traded corporations and large non-profit corporations and associations, from each federal agency involved; and
  • Other strategies to encourage the private sector to end illegal DEI discrimination and preferences and comply with all federal civil rights laws.

What it all means

The January 21 order is really just the tip of the iceberg with respect to Trump’s dismantling of corporate DEI programs and initiatives. We expect there to be a lot more to come on this front.  In the meantime, there are a few steps employers can take.

Federal contractors have 90-days to comply with the order. The OFCCP’s  website homepage now includes the following notice: “OFCCP is updating the website to bring the information into compliance with the new executive order. Please check back for updates and further guidance.” If you’re a federal contractor, here are a few steps you can take while we await the OFCCP’s guidance:

  • Do not stop complying with required filings, such as EEO-1 and VETS-4212 filings and state pay data reporting requirements, as applicable.
  • Stay informed of new guidance and track legal challenges to the new executive order and understand how those challenges may affect compliance obligations.
  • Consider working with legal counsel to develop a strategy for compliance.

For private employers, the order leaves many unanswered questions, including what is meant by “illegal DEI” preferences, mandates, policies, programs, and activities, and how employers can eliminate the same without running afoul of other federal requirements that prohibit discrimination, such as Title VII. Although Trump’s order is a shot across the bow to private employers, it does not currently require the private sector to halt DEI efforts that do not align with the Trump administration’s anti-DEI initiatives. While private employers wait for clarity and a federal enforcement plan to be released, it is advisable for private employers to do the following:

  • Evaluate the effectiveness of any existing DEI programs and consider whether a new approach may be necessary.
  • Review current hiring and recruiting policies and practices in light of Trump’s escalation against DEI practices and programs.
  • Stay informed of new guidance and track legal challenges to the new executive order and understand how those challenges may affect compliance obligations.
  • Consider working with legal counsel to develop a strategy for compliance.