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The Veris Insights DEI Hub

Where recruiting leaders stay up to date on the rapidly shifting landscape of Diversity, Equity, and Inclusion.

Since the new administration took office, Executive Orders and policy shifts have significantly influenced how government agencies approach Diversity, Equity, and Inclusion (DEI) programs. While federal laws remain unchanged and the direct impact on the private sector is limited for now, organizations are proactively reviewing their DEI programs, policies, and initiatives to ensure compliance and alignment with evolving expectations. We recognize that this landscape is shifting rapidly. Our goal is to monitor developments and provide you with the resources and insights needed to make informed decisions.

The Actions Dismantling DEI
Impact on Employers
Lawsuits to Track
Leadership Approaches to DEI

Presidential Actions Dismantling DEI

In January 2025, President Donald Trump issued executive orders targeting Diversity, Equity, and Inclusion (DEI) initiatives. These orders collectively aim to eliminate DEI initiatives within federal operations and contracting.

“Initial Recissions of Harmful Executive Actions”

Immediately revokes Biden executive orders, including:

  • EO 13985, (2021), Advancing Racial Equity and Support for Underserved Communities Through the Federal Government
  • EO 14031, (2021), Advancing Equity, Justice, and Opportunity for Asian Americans, Native Hawaiians, and Pacific Islanders
  • EO 14035, (2021), Diversity, Equity, Inclusion, and Accessibility in the Federal Workforce
  • EO 14049, (2021), White House Initiative on Advancing Educational Equity, Excellence, and Economic Opportunity for Native Americans and Strengthening Tribal Colleges and Universities
  • EO 14050, (2021), White House Initiative on Advancing Educational Equity, Excellence, and Economic Opportunity for Black Americans
  • EO 14091, (2023), Further Advancing Racial Equity and Support for Underserved Communities Through the Federal Government
  • EO 14124, (2024), White House Initiative on Advancing Educational Equity, Excellence, and Economic Opportunity Through Hispanic-Serving Institutions
“Ending Radical and Wasteful Government DEI Programs and Preferencing”
  • End DEI initiatives at all federal agencies. This includes firing all DEI officers, ending equity related initiatives, stopping all DEI grants, and prohibiting using diversity in performance reviews.
  • Within 60 days of its signing, setting a deadline of March 21, 2025, for these actions to be completed.
“Ending Illegal Discrimination and Restoring Merit-Based Opportunity”
  • Aims to eliminate “illegal DEI” within the federal government and its contractors and directs federal agencies to evaluate ways of curbing “illegal DEI” in the private sector. Eliminates the affirmative action requirement for federal contractors.
  • The attorney general must report in 120 days. Federal contractors have 90 days to end DEI practices deemed discriminatory or preferential and align with new directives.

The Impacts of Dismantling DEI

Federal Agencies
Federal Contractors
Private Sector

Elimination of DEI Offices & Roles

Agencies must dismantle DEI-related offices, such as Chief Diversity Officers, and remove DEI-focused performance evaluations. Restrictions on DEI Training Federal employees can no longer be required to undergo DEI-related training that discusses systemic racism, privilege, or unconscious bias.

Restrictions on DEI Training

Federal employees can no longer be required to undergo DEI-related training that discusses systemic racism, privilege, or unconscious bias.

Hiring & Promotion Changes

Prior affirmative action policies in federal hiring and promotions will be rescinded, reverting to a strictly race-neutral approach.

Legal & Disciplinary Actions

Employees or supervisors found promoting DEI initiatives that contradict the new policies could face disciplinary action.

Recession of Affirmative Action Requirements

Executive Order 11246, which mandated affirmative action in federal contracting, is revoked, removing obligations to actively promote workforce diversity.

Mandatory Compliance Certification

Contractors must certify that they do not engage in DEI initiatives deemed discriminatory under the order, risking contract termination if found non-compliant.

Increased Scrutiny & Audits

The Department of Justice and the Office of Federal Contract Compliance Programs (OFCCP) may conduct investigations into contractors with DEI initiatives.

Training & Policy Overhauls

Contractors must eliminate or significantly modify existing DEI training and policies to align with the new federal standards.

Increased Legal Scrutiny

Federal agencies are now directed to review and identify private sector DEI programs that may be considered discriminatory under federal law.

Rise in Public Sector Lawsuits

The executive orders create a legal environment where employees can more easily file “reverse discrimination” lawsuits against companies with DEI programs.

Financial & Reputational Consequences

Companies rolling back DEI commitments may face backlash from employees, customers, and investors—particularly ESG-focused stakeholders. However, those maintaining DEI initiatives risk government investigations and anti-DEI shareholder lawsuits creating a complex compliance landscape.

Lawsuits to Track

The Trump administration’s Executive Orders did not change DEI laws for the private sector. However, the federal government’s enforcement approach toward existing DEI laws has shifted. Federal agencies have been directed to scrutinize DEI-related practices more closely and identify potential targets for civil investigations.

Reverse Discimination

A white male marketing executive sued his employer, claiming he was fired due to race and gender. He pointed to the company’s DEI initiatives as evidence. The jury ruled in his favor, awarding $10M in damages (later reversed)
Duvall v. Novant Health, Inc.

Illegal Quotas

The state sued IBM, alleging it used a “diversity modifier” to set hiring quotas and link executive compensation to diversity goals, claiming this violated state anti-discrimination laws.
Missouri v. IBM Corp.

DEI Programs Under Scrutiny

Conservative advocacy group Do No Harm sued Pfizer, alleging that its Breakthrough Fellowship Program, which limited eligibility to Black, Hispanic, and Native American candidates, violated civil rights laws. The case was dismissed due to lack of standing, as the plaintiffs were anonymous. Pfizer continues to reference diversity-related eligibility criteria on its website, though framed around a broader commitment to DEI.
Do No Harm v. Pfizer, Inc.

DEI Training & Hostile Environment

An employee alleged that inclusion training, which included terms like “white fragility,” created a hostile work environment. The court dismissed the claim for lack of evidence but suggested future claims might succeed if proof of racial animus emerged.
Young v. Colorado Department of Corrections

How are Leaders Responding?

Three Leadership Orientations to DEI

Recommitting
Retooling
Rolling Back

Some leaders are publicly reaffirming their commitment to DEI, while working closely to make sure all programs are compliant with new the new EOs & federal regulation. In response to recent political challenges, several CEOs have publicly reaffirmed their commitment to fostering inclusive workplaces.

CEO statements in support of DEI have several common features. They frame DEI initiatives in terms of:

  • Merit – DEI allows them to hire the best talent
  • Business outcomes
  • Part of longstanding values and commitments
  • Fully aligned with legal practices

Since the SCOTUS 2023 Affirmative Action ruling, many employers have been retooling and adapting their processes. With the new administration, these changes are accelerating, with employers moving faster and delving even deeper.

 

What does this look like in practice?

 

  • Shifting the language used to describe programs and teams
  • Shifting eligibility requirements & broadening DEI criteria
  • Refocusing effort towards non-identity specific programs
  • Adapting school selection strategy
  • Restricting access to diversity data
  • Ensuring teams are educated on the laws and regulations

Some leaders have publicly distanced themselves from all DEI initiatives, including actions such as:

  • Stopping diversity trainings
  • Closing DEI offices
  • Eliminating ERGs
  • Ending any DEI goals in hiring

Your Path Forward for DEI Strategy

1. Assess Risk Tolerance

With your legal & compliance team, consider your organization’s orientation toward potential legal challenges related to DEI initiatives.

2. Audit Current Practices

Conduct an evaluation of current recruitment strategies, selection processes, and training to ensure they align with company goals and comply with legal standards.

3. Legal Compliance Review

Work with your compliance team to ensure all DEI policies align with federal (e.g., Title VII, Title IX) and state laws to mitigate legal risks.

4. Collateral Audit

Conduct a sweep of all internal policies, external reports, company websites and job descriptions to ensure language aligns with current standards.

5. Stakeholder Education

Make sure everyone involved in hiring are trained on appropriate, compliant practices. Make sure campus teams are ready to address any questions.

6. Thorough Documentation

Maintain clear records of DEI initiatives, including objectives, implementation strategies, and outcomes for accountability.

7. Transparent Communication

Clearly convey the purpose and legality of DEI efforts to employees, leadership, and external stakeholders.

8. Ongoing Monitoring & Adjustments

Regularly assess DEI initiatives for effectiveness and refine them to prevent unintended bias or legal exposure.

Navigate DEI with Greater Certainty

Our Latest Releases on DEI

At Veris Insights, we are committed to providing timely updates and resources on the evolving landscape impacting Talent Acquisition and Early Career teams. Due to the legal complexities of these developments, we strongly encourage teams to consult with their legal and compliance professionals.

What's Next for Employers?

Revisit our DEI webinar for expert analysis of the shifting political and regulatory landscape surrounding DEI and strategies employers are using to adapt.