Remind me, what's an executive order?

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

Executive orders impact the firms of the executive branch and for that reason do not require the approval of Congress. They need to be within the president's constitutional authority and might be challenged in court if considered unconstitutional.

Executive orders might be rescinded, reversed by future presidents, or challenged in court, and enforcement concerns can change throughout any administration.

The new administration's actions have far-reaching results beyond executive orders. For more on mitigating threat, worldwide services can take brand-new opportunities by remaining active.

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

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

EO 11246 needed every government agreement to include a declaration that the contractor will not victimize any staff member or candidate for employment based on race, creed, color, or national origin.

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

However, the executive order signals that there might be changing enforcement concerns in the new administration. The order directs all federal agencies to "combat 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 liberties workplace, indicating his record of "suing corporations who use 'woke' policies to victimize their workers."

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

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

Organizations that may be targeted should ask:

- What is my organization's danger tolerance?
- How will employees react to the business's actions?
- How will clients and stakeholders react?
What internal counsel should consider:

Assess any federal contracts and grants

- Determine if they include any terms or conditions connected to DEI that might conflict with present laws and guidelines
Review your organization's existing DEI policies to comprehend your risk

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

- Hiring and recruitment processes
- Performance evaluations and promotion decisions
- Training products and presence records
- Any changes to DEI policies
Implications for federal contractors

Among other steps, the Jan. 21 Executive Order needs the heads of federal companies to consist of specific terms in every agreement or grant award:

- "A term requiring the contractual counterparty or grant recipient to agree that its compliance in all aspects with all suitable Federal anti-discrimination laws is product to the federal government's payment decisions for functions of section 3729( b)( 4) of title 31, United States Code"; and
- "A term requiring such counterparty or recipient to license that it does not run any programs promoting DEI that break any suitable Federal anti-discrimination laws."
Section 3729 of title 31 of the United States Code is a provision of the US False Claims Act, a federal law that imposes civil charges on those who make incorrect claims to the government in order to affect the payment or receipt of money or home.

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

Executive orders targeting illegal immigration

President Trump's preliminary flurry of executive orders included many - such as the Jan. 20 executive order "Protecting the American People Against Invasion" - focused on restricting prohibited immigration and deporting unlawful immigrants. The orders call for enforcement actions by federal agencies versus prohibited immigration.

In-house lawyers need to consider evaluating their company's work eligibility confirmation procedure. They may also desire to consider whether the company is gotten ready for reacting to an I-9 audit or a worksite enforcement action (or raid) by immigration enforcement firms.

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

In-house counsel have an important role to play in establishing and making sure 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 post.

Have a look at useful checklists of considerations pertinent for internal legal representatives on the subject of I-9 audits and worksite enforcement actions.

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

Steps internal counsel need to think about:

- Determine the number of employees could potentially be impacted
- Review your company's employment eligibility confirmation procedure
- Ensure your organization's process is recorded and defensible
- Implement and enforce clear policies
- Monitor legal developments, including lawsuits and enforcement assistance
Mitigate risk, remain active, and seize new opportunities

The current executive orders will significantly affect international services. Legal departments and in-house counsel will require to assist their companies understand and adapt to changes, ensuring compliance or litigating when appropriate.

A number of the new administration's choices will play out over the coming months, including new executive orders and legal obstacles. The Docket will continue to keep an eye on advancements. Global internal legal representatives ought to get ready for fast advancements connected to:

Trade and tariffs. On Feb. 1, employment 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 former two were both postponed by a month as the administration takes part in settlements. Meanwhile, China has begun its own retaliatory steps on US products. He had previously revealed his intent to 25-percent escalating tariffs on Colombia (an action that was ultimately not taken).
Technology and intellectual property. Among the president's very 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 out waves throughout the technology sector, both in the United States and abroad.
Energy, environment, and health. The president also withdrew the United States from the Paris Climate Agreement and the World Health Organization, putting an early emphasis on American energy self-reliance and far from the previous administration's worldwide sustainability efforts.
Steps in-house counsel should think about:

- Assess the effect of prospective tariff increases on supply chain and business connection.
- Assess the company's dependency on social media platforms, such as for marketing purposes, and the potential needs to backup social media information and possessions in case their chosen platform ceases to be available.
- Consider how advancements in the new administration's technique to ecological, sustainability and governance issues might affect the organization's ESG method.
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