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Remind me, what's an executive order?

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

Executive orders impact the agencies 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 job may be challenged in court if considered unconstitutional.

Executive orders might be rescinded, overturned by future presidents, or challenged in court, and enforcement top priorities can change during any administration.

The new administration's actions have far-reaching impacts beyond executive orders. For more on mitigating danger, global companies can seize new opportunities by remaining nimble.

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

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

EO 11246 needed every government agreement to consist of a declaration that the professional will not victimize any employee or applicant for employment based upon race, creed, color, or national origin.

Despite President Trump's brand-new executive order, the underlying federal anti-discrimination law stays unchanged for job private-sector staff members.

However, the executive order signals that there may be altering enforcement priorities in the new administration. The order directs all federal agencies to "combat prohibited private-sector DEI choices, mandates, policies, programs, and activities."

In December 2024, President-elect Trump tapped Harmeet K. Dhillon to lead the Justice Department's civil rights workplace, Job pointing to his record of "taking legal action against corporations who use 'woke' policies to discriminate versus their workers."

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

The economic sector entities based on these examinations include publicly traded corporations, large nonprofits - including bar associations - large foundations, and universities whose endowments exceed US$ 1 billion.

Organizations that may be targeted should ask:

- What is my organization's danger tolerance?
- How will workers react to the business's actions?
- How will consumers and stakeholders respond?
What in-house counsel needs to think of:

Assess any federal contracts and grants

- Determine if they include any terms or conditions associated with DEI that might contravene current laws and guidelines
Review your company's existing DEI policies to understand your threat

- Prepare for increased examination and prospective civil compliance examinations
Document, file, document

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

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

- "A term needing the contractual counterparty or grant recipient to concur that its compliance in all aspects with all applicable Federal anti-discrimination laws is product to the federal government's payment choices for purposes 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 operate any programs promoting DEI that break any applicable 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 incorrect claims to the federal government in order to affect the payment or receipt of money or home.

The accreditation requirement carries a prospective danger of lawsuits for federal specialists under the False Claims Act. In-house attorneys at federal contractors thus have a specific interest in guaranteeing their company's policies, procedures, practices, communications and material, are examined. Assess if changes are required to alleviate the risk of litigation.

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" - aimed at restricting illegal migration and deporting unlawful immigrants. The orders require enforcement actions by federal agencies against unlawful immigration.

In-house attorneys should think about evaluating their organization's work eligibility verification process. They may likewise wish to think about whether the organization is prepared for reacting to an I-9 audit or a worksite enforcement action (or raid) by migration enforcement agencies.

Sectors that may be especially impacted include farming, hospitality, and other markets such as building. 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 workforce.

In-house counsel have a crucial role to play in developing and making sure constant application of the Form I-9 and E-Verify guidelines the federal government utilizes to implement and implement migration 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 factors to consider relevant for internal lawyers on the subject 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 company could begin an I-9 audit if they felt an employer was blocking their requirement to apprehend a non-citizen worker, or in some cases obtain a criminal warrant from a judge if actions support it.

Steps in-house counsel ought to think about:

- Determine the number of workers might potentially be affected
- Review your organization's work procedure
- Ensure your organization's procedure is recorded and defensible
- Implement and enforce clear policies
- Monitor legal advancements, consisting of litigation and enforcement assistance
Mitigate threat, stay active, and seize new opportunities

The current executive orders will considerably affect international businesses. Legal departments and internal counsel will need to help their companies understand and job adapt to modifications, guaranteeing compliance or litigating when proper.

A lot of the new administration's choices will play out over the coming months, consisting of new executive orders and legal difficulties. The Docket will continue to keep track of advancements. Global internal attorneys must get ready for fast advancements connected to:

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 additional tariffs on imports from China. The previous two were both delayed by a month as the administration engages in negotiations. Meanwhile, China has started its own vindictive measures on US products. He had actually formerly revealed his intent to enforce 25-percent escalating tariffs on Colombia (an action that was eventually not taken).
Technology and intellectual residential or commercial property. Among the president's first actions was to rescind the previous administration's AI executive order. The new administration also extended a grace period for TikTok's approaching ban, 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 away from the previous administration's international sustainability efforts.
Steps internal counsel ought to consider:

- Assess the effect of potential tariff boosts on supply chain and company connection.
- Assess the organization's dependence on social media platforms, such as for marketing functions, and the prospective requirements to backup social networks information and possessions in case their chosen platform ceases to be offered.
- Consider how advancements in the new administration's method to environmental, sustainability and governance problems might impact the organization's ESG strategy.
Disclaimer: The details in any resource in this website must not be interpreted as legal advice or as a legal viewpoint on specific realities, and ought to not be thought about representing the views of its authors, its sponsors, and/or ACC. These resources are not meant as a conclusive declaration on the subject addressed. Rather, they are planned to function as a tool providing practical guidance and references for the hectic in-house practitioner and other readers.