employers based on perceived violations of DEI-related laws or bringing enforcement actions. The government appealed that order and sought a stay of the preliminary injunction. On March 14, 2025, the U.S. Court of Appeals for the Fourth Circuit granted the government’s motion and lifted the preliminary injunction, thereby allowing the Trump administration to enforce the Trump executive orders while the lawsuit is pending. How the case will ultimately be decided remains uncertain. Employers should keep a close eye on this case and any further developments. A number of other lawsuits have been filed challenging the Trump EO; however, unless an injunction is reinstated or entered, covered federal contractors must be prepared to comply with the Trump EO. Employers should review their existing affirmative action plans/programs and DEI initiatives to ensure compliance with the Trump EO and anti-discrimination laws and consult with experienced legal counsel. Also keep in mind that some states and local municipalities may have DEI and affirmative action requirements that impose additional or different obligations. The Equal Employment Opportunity Commission recently issued a press release warning employers against unlawful DEI-related discrimination. The EEOC and Department of Justice also issued technical guidance on what to know about DEI-related discrimination and the actions a person should take if they experience DEI-related discrimination at work. The federal agencies warned that any employment action that is motivated, in whole or in part, by a person’s race, sex or other protected characteristic is unlawful, including using quotas or “balancing” the workforce based on those characteristics. The DOJ also issued a statement expressing their commitment to end illegal DEI initiatives, policies and programs. Employers are cautioned that when implementing policies and deciding on hiring practices, training programs, promotions, etc., they should not consider race, sex, ethnicity or other protected characteristics. Those decisions should be based upon merit and other non-discriminatory factors. Information in this article is provided for general information purposes only and does not constitute legal advice or an opinion of any kind. You should consult with legal counsel for advice on your institution’s specific legal issues. 1 “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” White House, Jan. 21, 2025. https://bit.ly/TrumpEO-DEI 2 The Trump EO does not affect a federal contractor’s obligations under the Vietnam Era Veterans Readjustment Assistance Act to protect certain veterans or under Section 503 of the Rehabilitation Act to protect individuals with disabilities. Federal contractors who are subject to VEVRAA and Section 503 requirements must continue their affirmative action compliance obligations under those Acts. 3 The nondiscrimination, non-harassment and no retaliation provisions of Title VII, the Equal Pay Act, the Age Discrimination in Employment Act and the Americans with Disabilities Act remain in place and are not affected by the Trump EO. 4 “Ending Radical and Wasteful Government DEI Programs and Preferencing.” White House, Jan. 20, 2025. https://bit.ly/TrumpEOPreferencing Debra A. Mastrian Partner Amundsen Davis LLC DMastrian@AmundsenDavisLaw.com Debbie grew up watching her father practice law and seeing him help people resolve their problems inspired her to become a lawyer. With a focus on employment litigation and counseling, Debbie’s practice includes defending employers against discrimination claims, wage and hour violations, retaliation claims, unfair competition and FLSA collective actions. She also handles a wide range of business litigation matters. Amundsen Davis LLC is a Diamond Associate Member of the Indiana Bankers Association. MAY/JUNE 2025 37
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