April, 2025 DEI Developments - US Roundup

Judge blocks DOL enforcement of DEI Executive Order: Chicago federal district court Judge Matthew Kennelly issued an injunction blocking the U.S. Department of Labor from requiring contractors to certify that their DEI programs comply with anti-discrimination laws.

• Executive Order 14173, among other provisions aimed at restricting DEI practices, requires federal contractors to certify that their DEI practices and programs are lawful under anti-discrimination laws.

• The injunction applies only to federal contracts with the Department of Labor, and prohibits the DOL from requiring certifications from companies holding contracts with them.

The bottom line: The injunction is limited in scope, and could soon be lifted by a court of appeals, as was the case with a prior injunction that blocked most of the Executive Order across all agencies. It will take several weeks, months, and potentially years for the legal dust surrounding the Executive Order on private sector DEI programs to settle – in the meantime, the Trump administration will continue using all available authority to target companies over alleged “unlawful” DEI practices under existing law.

Some law firms resist EEOC DEI probes, others reach settlement agreements: After the EEOC demanded significant information related to DEI practices from 20 top law firms earlier this month, initial responses have ranged from defiance to submission.

• Of the 20 law firms targeted, four reached settlements with the EEOC. As part of these settlements, the firms agreed to forgo labeling any “lawful employment practice” as DEI, to submit to ongoing “compliance monitoring,” and to an overall commitment to “lawful merit-based hiring.”

• The remaining 16 firms reportedly rejected the EEOC’s demands in responses sent to the Commission while acknowledging that some sort of legal fight was likely to follow.

The bottom line: The EEOC is likely to target private companies in a similar manner soon. The responses from the targeted law firms – and any ensuing ramifications – provide strategic insights for companies who may soon face a similar choice.

Former EEOC, OFCCP officials urge companies to remain committed to DEI: A group of former EEOC and OFCCP officials published an open letter to federal contractors urging them to remain committed to “employment practices to promote equal opportunity for all.”

• The letter advocated for companies to continue collecting and analyzing workforce data and to address any significant demographic gaps through proactive DEI practices.

• The ex-officials maintained that the current administration’s efforts to dismantle OFCCP affirmative action requirements and target corporate DEI initiatives are unlawful.

• The signatories are all alumni of the Biden, Obama, and Clinton administrations.

The bottom line: The letter highlights the importance of examining DEI-related risks through both short and long-term lenses – abandoning certain efforts may limit risk in the current environment but increase it in a future administration.