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Remind me, what's an executive order?

Executive orders are regulations bought by the president of the United States that direct federal government companies and authorities to take particular actions. While they are not laws, they have the force of law and impact how existing laws are implemented or imposed.

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

Executive orders may be rescinded, reversed by future presidents, or employment challenged in court, and enforcement top priorities can alter throughout any administration.

The new administration's actions have far-reaching results beyond executive orders. For more on mitigating threat, global companies can take new chances by remaining active.

Implications of the executive orders for DEI initiatives and work in private-sector organizations

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

EO 11246 required every government contract to consist of a declaration that the contractor will not victimize any employee or candidate for employment based upon race, creed, employment color, or national origin.

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

However, the executive order signals that there might be altering enforcement top priorities in the new administration. The order directs all federal agencies to "fight illegal private-sector DEI preferences, requireds, policies, programs, and activities."

In December 2024, President-elect Trump tapped Harmeet K. Dhillon to lead the Justice Department's civil rights workplace, pointing to his record of "suing corporations who use 'woke' policies to victimize their employees."

In addition to revoking EO 11246, the Jan. 21 executive order advises each firm of the federal government to identify "up to 9 potential civic compliance examinations" of personal sector entities within 120 days of the order - by May 21, 2025.

The economic sector entities based on these examinations include openly traded corporations, big nonprofits - consisting of bar associations - large structures, and universities whose endowments surpass US$ 1 billion.

Organizations that may be targeted should ask:

- What is my company's danger tolerance?
- How will employees react to the business's actions?
- How will customers and stakeholders react?
What internal counsel needs to think of:

Assess any federal agreements and grants

- Determine if they contain any terms or conditions connected to DEI that might clash with current laws and regulations
Review your company's existing DEI policies to understand your risk

- Get ready for increased examination and prospective civil compliance investigations
Document, file, document

- Hiring and recruitment processes
- Performance examinations and promotion choices
- Training materials and attendance records
- Any changes to DEI policies
Implications for employment federal contractors

To name a few steps, the Jan. 21 Executive Order needs the heads of federal agencies to include specific terms in every contract or grant award:

- "A term requiring the legal counterparty or grant recipient to concur that its compliance in all aspects with all suitable Federal anti-discrimination laws is material to the federal government's payment decisions for functions of area 3729( b)( 4) of title 31, United States Code"; and
- "A term requiring such counterparty or recipient to certify that it does not operate any programs promoting DEI that breach any appropriate 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 enforces civil penalties on those who make false claims to the federal government in order to influence the payment or invoice of money or residential or commercial property.

The accreditation requirement carries a possible risk of litigation for federal specialists under the False Claims Act. In-house lawyers at federal specialists hence have a specific interest in ensuring their company's policies, procedures, practices, communications and content, are examined. Assess if changes are required to alleviate the risk of lawsuits.

Executive orders targeting illegal migration

President Trump's initial flurry of executive orders consisted of lots of - such as the Jan. 20 executive order "Protecting the American People Against Invasion" - intended at limiting prohibited migration and deporting unlawful immigrants. The orders call for enforcement actions by federal agencies against illegal migration.

In-house legal representatives ought to consider evaluating their organization's employment eligibility verification process. They may likewise wish to think about whether the company is prepared for employment reacting to an I-9 audit or a worksite enforcement action (or raid) by immigration enforcement agencies.

Sectors that might be particularly affected consist of farming, hospitality, and other markets such as building and employment 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 work in hospitality, employment representing 7.1 percent of the workforce.

In-house counsel have a crucial to play in establishing and guaranteeing consistent application of the Form I-9 and E-Verify regulations the federal government uses to carry out and enforce 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.

Check out helpful lists of factors to consider pertinent for internal lawyers on the topic of I-9 audits and worksite enforcement actions.

If a company does not work together with a civil administrative warrant provided by US Immigration and Customs Enforcement (ICE), there is a danger that the firm could start an I-9 audit if they felt an employer was obstructing their requirement to detain a non-citizen staff member, or sometimes obtain a criminal warrant from a judge if actions support it.

Steps in-house counsel must think about:

- Determine how numerous staff members might possibly be affected
- Review your organization's employment eligibility confirmation procedure
- Ensure your organization's process is documented and defensible
- Implement and impose clear policies
- Monitor legal advancements, including lawsuits and enforcement guidance
Mitigate threat, remain nimble, employment and take new chances

The current executive orders will significantly affect global companies. Legal departments and in-house counsel will require to assist their companies comprehend and adjust to modifications, making sure compliance or litigating when proper.

A lot of the brand-new administration's decisions will play out over the coming months, including brand-new executive orders and legal obstacles. The Docket will continue to keep an eye on developments. Global internal lawyers should prepare for quick developments related to:

Trade and tariffs. On Feb. 1, President Trump purchased 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 postponed by a month as the administration takes part in negotiations. Meanwhile, China has actually begun its own vindictive measures on US products. He had actually previously revealed his intent to enforce 25-percent escalating 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 new administration likewise extended a grace period for TikTok's impending ban, sending waves throughout the technology sector, both in the United States and abroad.
Energy, climate, and health. The president also withdrew the United States from the Paris Climate Agreement and the World Health Organization, putting an early focus on American energy self-reliance and far from the previous administration's worldwide sustainability efforts.
Steps internal counsel should consider:

- Assess the impact of prospective tariff increases on supply chain and company connection.
- Assess the company's dependency on social networks platforms, such as for marketing purposes, and the prospective requirements to backup social media data and possessions in the event their chosen platform stops to be available.
- Consider how advancements in the new administration's technique to ecological, sustainability and governance issues may impact the organization's ESG strategy.
Disclaimer: The info in any resource in this website must not be construed as legal advice or as a legal opinion on particular realities, and should not be considered representing the views of its authors, its sponsors, and/or ACC. These resources are not intended as a conclusive declaration on the subject dealt with. Rather, they are meant to function as a tool offering useful assistance and recommendations for the busy in-house practitioner and other readers.