Remind me, what's an executive order?

Executive orders are instructions purchased by the president of the United States that direct government agencies and officials to take particular actions. While they are not laws, they have the force of law and effect how existing laws are carried out or enforced.

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

Executive orders may be rescinded, overturned by future presidents, or challenged in court, and enforcement priorities can change during any administration.

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

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

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

EO 11246 required every federal government contract to include a declaration that the contractor will not discriminate against any employee or candidate for employment based upon race, library.kemu.ac.ke creed, color, or national origin.

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

However, the executive order signals that there may be altering enforcement priorities in the new administration. The order directs all federal companies to "combat illegal 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 office, pointing to his record of "suing corporations who utilize 'woke' policies to victimize their employees."

In addition to withdrawing EO 11246, the Jan. 21 executive order instructs each agency of the federal government to identify "as much as nine potential civic compliance examinations" of economic sector entities within 120 days of the order - by May 21, 2025.

The economic sector entities based on these investigations consist of 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 organization's risk tolerance?
- How will employees react to the company's actions?
- How will customers and stakeholders react?
What internal counsel ought to consider:

Assess any federal agreements and grants

- Determine if they consist of any terms or conditions connected to DEI that might contravene present laws and regulations
Review your organization's existing DEI policies to comprehend your risk

- Get ready for increased scrutiny and possible civil compliance examinations
Document, document, file

- Hiring and recruitment procedures
- and promotion decisions
- Training materials and presence records
- Any changes to DEI policies
Implications for federal specialists

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

- "A term requiring the contractual counterparty or grant recipient to concur that its compliance in all respects with all suitable Federal anti-discrimination laws is product to the government's payment decisions for purposes of area 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 breach any applicable 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 enforces civil charges on those who make false claims to the government in order to affect the payment or receipt of money or residential or commercial property.

The accreditation requirement carries a potential danger of litigation for federal specialists under the False Claims Act. In-house attorneys at federal contractors hence have a specific interest in guaranteeing their organization's policies, procedures, practices, communications and content, are examined. Assess if modifications are needed to mitigate the threat of litigation.

Executive orders targeting prohibited migration

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

In-house attorneys need to consider reviewing their company's employment eligibility confirmation process. They may likewise want to think about whether the organization is gotten ready for reacting to an I-9 audit or a worksite enforcement action (or raid) by migration enforcement companies.

Sectors that may be especially impacted consist of agriculture, hospitality, and other industries such as 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 function to play in establishing and guaranteeing consistent application of the Form I-9 and E-Verify guidelines the federal government utilizes 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 post.

Have a look at informative lists of considerations appropriate for in-house legal representatives on the topic of I-9 audits and worksite enforcement actions.

If an employer does not work together with a civil administrative warrant provided by US Immigration and Customs Enforcement (ICE), there is a threat that the agency could begin an I-9 audit if they felt an employer was blocking their requirement to jail a non-citizen employee, or sometimes get a criminal warrant from a judge if actions support it.

Steps internal counsel should think about:

- Determine the number of employees could potentially be impacted
- Review your company's employment eligibility confirmation procedure
- Ensure your organization's procedure is documented and defensible
- Implement and impose clear policies
- Monitor legal developments, consisting of lawsuits and enforcement guidance
Mitigate threat, remain active, and take new chances

The recent executive orders will significantly impact international services. Legal departments and in-house counsel will require to assist their companies comprehend and adapt to changes, ensuring compliance or litigating when proper.

Much of the brand-new administration's choices will play out over the coming months, consisting of brand-new executive orders and legal obstacles. The Docket will continue to keep track of developments. Global internal lawyers need to get ready for fast developments related to:

Trade and tariffs. On Feb. 1, President Trump bought the imposition of a 25-percent tariff on imports from Canada and Mexico, and 10-percent extra tariffs on imports from China. The previous 2 were both postponed by a month as the administration engages in negotiations. Meanwhile, China has actually begun its own vindictive procedures on US items. He had formerly revealed his intent to enforce 25-percent escalating tariffs on Colombia (an action that was ultimately not taken).
Technology and copyright. One of 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 upcoming restriction, sending 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 independence and far from the previous administration's international sustainability efforts.
Steps in-house counsel need to consider:

- Assess the impact of possible tariff boosts on supply chain and business connection.
- Assess the company's dependence on social networks platforms, such as for marketing functions, and the prospective needs to backup social media information and possessions in case their preferred platform stops to be readily available.
- Consider how developments in the new administration's method to environmental, sustainability and governance problems may affect the company's ESG strategy.
Disclaimer: The details in any resource in this website ought to not be construed as legal suggestions or as a legal opinion on particular facts, and should not be thought about 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 intended to serve as a tool offering practical guidance and referrals for the busy internal specialist and other readers.