Remind me, what's an executive order?

Executive orders are regulations ordered by the president of the United States that direct government companies and officials to take specific actions. While they are not laws, they have the force of law and impact how existing laws are carried out or implemented.

Executive orders impact the firms of the executive branch and therefore do not require the approval of Congress. They should be within the president's constitutional authority and may be challenged in court if deemed unconstitutional.

Executive orders might be rescinded, overturned by future presidents, or challenged in court, and enforcement concerns can alter throughout any administration.

The new administration's actions have significant impacts beyond executive orders. For more on mitigating risk, international businesses can seize brand-new opportunities by staying nimble.

Implications of the executive orders for DEI efforts and employment in private-sector organizations

On Jan. 21, referall.us President Trump provided "Ending Illegal Discrimination and Restoring Merit-Based Opportunity," which reverses various previous executive orders and memoranda, including Executive Order 11246 (EO 11246) signed in 1965 by President Lyndon B. Johnson.

EO 11246 needed every federal government agreement to consist of a statement that the specialist will not victimize any employee or applicant for employment based upon race, creed, color, or nationwide origin.

Despite President Trump's brand-new executive order, the underlying federal anti-discrimination law remains the same for private-sector workers.

However, the executive order signals that there might be altering enforcement concerns in the new administration. The order directs all federal agencies to "combat unlawful private-sector DEI choices, requireds, policies, programs, and activities."

In December 2024, President-elect Trump tapped Harmeet K. Dhillon to lead the Justice Department's civil liberties workplace, pointing to his record of "suing corporations who utilize 'woke' policies to discriminate versus their workers."

In addition to withdrawing EO 11246, the Jan. 21 executive order advises each firm of the federal government to determine "up to 9 prospective civic compliance investigations" of economic sector entities within 120 days of the order - by May 21, 2025.

The personal sector entities subject to these investigations include publicly traded corporations, big nonprofits - including bar associations - large foundations, and universities whose endowments surpass US$ 1 billion.

Organizations that may be targeted should ask:

- What is my company's threat tolerance?

- How will staff members react to the business's actions?

- How will customers and stakeholders respond?


What internal counsel ought to think about:

Assess any federal agreements and grants

- Determine if they include any terms or conditions related to DEI that may contrast with current laws and guidelines


Review your organization's existing DEI policies to understand your risk

- Prepare for increased examination and potential civil compliance examinations


Document, document, file

- Hiring and recruitment procedures

- Performance assessments and promo decisions

- Training products and presence records

- Any modifications to DEI policies


Implications for federal contractors

Among other measures, the Jan. 21 Executive Order requires the heads of federal firms to include particular terms in every agreement or grant award:

- "A term needing the contractual counterparty or grant recipient to concur that its compliance in all respects with all applicable Federal anti-discrimination laws is product to the federal government's payment decisions for purposes of section 3729( b)( 4) of title 31, United States Code"; and

- "A term needing such counterparty or recipient to license that it does not operate any programs promoting DEI that break any relevant Federal anti-discrimination laws."


Section 3729 of title 31 of the United States Code is an arrangement of the US False Claims Act, a federal law that imposes civil penalties on those who make false claims to the government in order to influence the payment or receipt of cash or home.

The certification requirement brings a potential risk of litigation for federal professionals under the False Claims Act. In-house legal representatives at federal specialists thus have a specific interest in ensuring their company's policies, treatments, practices, communications and content, are examined. Assess if modifications are needed to reduce the danger of lawsuits.

Executive orders targeting unlawful immigration

President Trump's initial flurry of executive orders included many - such as the Jan. 20 executive order "Protecting the American People Against Invasion" - aimed at limiting illegal immigration and deporting prohibited immigrants. The orders require enforcement actions by federal agencies against illegal migration.

In-house attorneys ought to consider examining their company's employment eligibility confirmation process. They might likewise wish to consider whether the organization is gotten ready for reacting to an I-9 audit or a worksite enforcement action (or raid) by migration enforcement agencies.

Sectors that might be especially affected consist of farming, hospitality, and other industries such as construction. From 2020-2022, 42 percent of crop farmworkers held no work permission, according to the US Department of Agriculture. The American Immigration Council estimates that more than one million undocumented immigrants operate in hospitality, somalibidders.com representing 7.1 percent of the labor force.

In-house counsel have a crucial role to play in establishing and ensuring consistent application of the Form I-9 and E-Verify policies the federal government uses to implement and implement immigration law, shares John W. Mazzeo, AGC, director of I-9 and E-Verify compliance for Vertical Screen, Inc., in a 2024 ACC Docket article.

Take a look at informative checklists of factors to consider pertinent for internal attorneys on the subject of I-9 audits and worksite enforcement actions.

If an employer does not comply with a civil administrative warrant provided by US Immigration and Customs Enforcement (ICE), there is a risk that the agency might start an I-9 audit if they felt an employer was blocking their requirement to apprehend a non-citizen worker, or in some cases obtain a criminal warrant from a judge if actions support it.

Steps in-house counsel must think about:

- Determine the number of staff members could potentially be impacted

- Review your organization's work eligibility verification process

- Ensure your organization's process is documented and defensible

- Implement and implement clear policies

- Monitor legal advancements, consisting of lawsuits and enforcement assistance


Mitigate danger, remain nimble, and take new chances

The recent executive orders will substantially impact international companies. Legal departments and internal counsel will need to help their companies comprehend and adjust to changes, guaranteeing compliance or litigating when appropriate.

A lot of the new administration's choices will play out over the coming months, including new executive orders and legal difficulties. The Docket will continue to keep an eye on developments. Global in-house legal representatives ought to prepare for fast advancements connected to:

Trade and tariffs. On Feb. 1, President Trump ordered the imposition of a 25-percent tariff on imports from Canada and Mexico, and 10-percent additional tariffs on imports from China. The previous 2 were both delayed by a month as the administration engages in settlements. Meanwhile, China has actually begun its own vindictive steps on US goods. He had actually previously announced his intent to impose 25-percent intensifying tariffs on Colombia (an action that was ultimately not taken).


Technology and copyright. Among the president's first actions was to rescind the previous administration's AI executive order. The brand-new administration also extended a grace period for TikTok's impending ban, sending waves throughout the technology sector, both in the United States and abroad.


Energy, environment, and health. The president likewise withdrew the United States from the Paris Climate Agreement and the World Health Organization, putting an early emphasis on American energy independence and m1bar.com away from the previous administration's international sustainability efforts.


Steps in-house counsel must think about:

- Assess the effect of potential tariff boosts on supply chain and company continuity.

- Assess the company's dependence on social media platforms, such as for marketing functions, and the prospective requirements to backup social networks data and properties in the occasion their preferred platform stops to be offered.

- Consider how developments in the new administration's approach to ecological, sustainability and governance issues might affect the organization's ESG method.


Disclaimer: The details in any resource in this site should not be construed as legal guidance or as a legal opinion on particular facts, and need to not be thought about representing the views of its authors, its sponsors, and/or ACC. These resources are not intended as a definitive declaration on the subject attended to. Rather, they are meant to serve as a tool offering practical guidance and references for the busy in-house practitioner and other readers.