The question of whether Diversity, Equity, and Inclusion (DEI) initiatives will continue under the current U.S. administration has sparked significant debate. In January, two important executive orders were issued, leaving many organizations, particularly those with federal contracts or funding, to assess how these changes might affect their DEI and gender inclusion programs.

The executive order issued on January 20th mandates that all federal agencies and policies recognize only two sexes—male and female—while rejecting gender identity as a legitimate classification. A second order issued on January 21st targets what is referred to as “illegal DEI,” revoking affirmative action requirements and launching investigations into DEI programs.

These orders primarily impact federal contractors and organizations receiving federal funds, potentially reshaping hiring practices, workplace policies, and training initiatives. While these rules do not directly affect most private employers or public employers not receiving federal funds, it is likely that similar rulings from other federal agencies—such as the EEOC, NLRB, and DOL—could have broader implications. Given the resulting confusion and the potential for further developments under this administration, we’ve compiled additional information to provide clarity and guidance.

The Immediate Implications

For most private and public employers not receiving federal funds, the answer is that there are no immediate implications. However, with the possibility of similar orders or rulings emerging as the administration continues, HR leaders must stay proactive in understanding the potential impacts on their DEI and inclusion programs. They will also need to assess how employees may be affected and take the necessary steps to comply with new regulations.

The legal landscape is rapidly evolving, with the new orders conflicting with the 2020 U.S. Supreme Court ruling in Bostock v. Clayton County, which affirmed that discrimination based on gender identity is a form of sex discrimination under Title VII of the Civil Rights Act. These conflicting directives, combined with anticipated future changes, create potential legal challenges for employers, who may be tasked with balancing federal mandates with existing court rulings.

Suggestions for Compliance

Employers will face a difficult challenge in balancing the current U.S. Supreme Court decision with the policies of the Trump administration. HR leaders should take a proactive approach in reviewing and adjusting their policies, training programs, and recruitment practices to ensure compliance with new guidelines without compromising fairness and inclusion.

This might involve updating training and communications to focus on leadership, collaboration, and business outcomes, rather than demographic factors. Rebranding employee resource groups as business resource groups could align DEI initiatives with broader organizational goals, such as leadership development and mentorship. Additionally, rather than offering training that focuses on specific identities or statuses, employers might consider broader cultural competency training—recognizing that all employees bring unique experiences, values, and communication styles to the workplace.

Next Steps

While the new executive orders do not directly apply to most organizations, similar rulings from federal agencies with wider jurisdiction are likely. As these executive orders introduce uncertainty, businesses should proactively assess how diversity in recruitment and training aligns with their mission, vision, and values. Reviewing and adjusting policies and training to ensure legal compliance, while maintaining inclusive practices, will be essential for navigating this evolving landscape.

Eckberg Lammers offers a range of resources to help our organizational clients navigate both legal compliance and practical concerns in today’s evolving climate. For assistance with understanding current legal implications, including policy review and development, more information is available here. If you’re seeking support for individual or group training focused on behaviors—rather than identities or statuses—designed to maximize potential, enhance motivation, and foster opportunities for growth and collaboration, more information can be found on our Organizational Culture page.