Remind me, what's an executive order?

Executive orders are instructions purchased by the president of the United States that direct government companies and authorities to take specific actions. While they are not laws, they have the force of law and effect how existing laws are executed or imposed.

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

Executive orders may be rescinded, reversed by future presidents, or challenged in court, and enforcement concerns can alter throughout any administration.

The brand-new administration's actions have far-reaching impacts beyond executive orders. For more on mitigating threat, employment worldwide businesses can take brand-new chances 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 numerous previous executive orders and memoranda, consisting of Executive Order 11246 (EO 11246) signed in 1965 by President Lyndon B. Johnson.

EO 11246 needed every government contract to include a statement that the specialist will not discriminate versus any worker 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 stays unchanged for private-sector workers.

However, the executive order signals that there may be altering enforcement top priorities in the new administration. The order directs all federal agencies to "fight prohibited 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 office, 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 agency of the federal government to identify "up to nine potential civic compliance investigations" of economic 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 - including bar associations - big structures, and universities whose endowments exceed US$ 1 billion.

Organizations that may be targeted should ask:

- What is my company's risk tolerance?
- How will staff members react to the business's actions?
- How will clients and stakeholders respond?
What internal counsel must consider:

Assess any federal agreements and grants

- Determine if they include any terms or conditions related to DEI that might contrast with existing laws and policies
Review your company's existing DEI policies to comprehend your danger

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

- Hiring and recruitment processes
- Performance assessments and promo decisions
- Training materials and presence records
- Any modifications to DEI policies
Implications for federal professionals

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

- "A term needing the legal counterparty or grant recipient to agree that its compliance in all respects with all applicable Federal anti-discrimination laws is material 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 certify that it does not run any programs promoting DEI that breach 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 enforces civil charges on those who make false claims to the federal government in order to affect the payment or invoice of cash or property.

The accreditation requirement brings a potential risk of lawsuits for federal contractors under the False Claims Act. In-house lawyers at federal contractors hence have a particular interest in ensuring their company's policies, procedures, practices, communications and content, are evaluated. Assess if changes are needed to reduce the danger of lawsuits.

Executive orders targeting unlawful migration

President Trump's preliminary flurry of executive orders included numerous - such as the Jan. 20 executive order "Protecting the American People Against Invasion" - targeted at limiting unlawful migration and deporting illegal immigrants. The orders call for enforcement actions by federal firms versus unlawful immigration.

In-house attorneys must think about reviewing their organization's work eligibility verification procedure. They may likewise wish to think about whether the company 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 particularly impacted include agriculture, hospitality, and other industries such as building. From 2020-2022, 42 percent of crop farmworkers held no work permission, according to the US Department of Agriculture. The American Immigration Council approximates that more than one million undocumented immigrants work in hospitality, representing 7.1 percent of the workforce.

In-house counsel have an important role to play in developing and employment making sure constant application of the Form I-9 and E-Verify regulations the federal government uses to execute and employment 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 informative checklists of considerations appropriate for in-house attorneys on the topic 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 could commence an I-9 audit if they felt a company was blocking their need to apprehend a non-citizen employee, or sometimes obtain a criminal warrant from a judge if actions support it.

Steps internal counsel must think about:

- Determine how many employees could possibly be affected
- Review your company's employment eligibility confirmation procedure
- Ensure your organization's procedure is documented and defensible
- Implement and implement clear policies
- Monitor legal advancements, consisting of lawsuits and enforcement assistance
Mitigate threat, stay nimble, and seize new opportunities

The recent executive orders will significantly affect global organizations. Legal departments and in-house counsel will need to help their organizations comprehend and adjust to changes, making sure compliance or litigating when suitable.

A lot of the brand-new administration's decisions will play out over the coming months, including new executive orders and legal obstacles. The Docket will continue to keep track of advancements. Global in-house legal representatives must get ready for rapid advancements associated with:

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 extra tariffs on imports from China. The former two were both delayed by a month as the administration engages in settlements. Meanwhile, China has begun its own vindictive procedures on US goods. He had formerly revealed his intent to impose 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 brand-new administration also extended a grace period for TikTok's upcoming restriction, 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 independence and employment away from the previous administration's worldwide sustainability efforts.
Steps internal counsel should consider:

the impact of possible tariff increases on supply chain and service connection.
- Assess the organization's dependence on social media platforms, such as for marketing functions, and the possible requirements to backup social networks information and assets in case their preferred platform ceases to be offered.
- Consider how advancements in the brand-new administration's technique to environmental, sustainability and governance issues might affect the organization's ESG method.
Disclaimer: The info in any resource in this site need to not be interpreted as legal guidance or as a legal opinion on particular truths, and must 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 attended to. Rather, they are intended to work as a tool providing useful assistance and recommendations for the busy in-house specialist and other readers.