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Friday, July 17, 2026

Disparate impact liability rollback advances with DOL rule on federal funding access - HR Dive

The change comports with similar Trump administration efforts and is aimed at aligning with the “original public meaning” of Title VI of the 1964 Civil Rights Act, DOL said.

  • The U.S. Department of Labor issued a final rule on Thursday to eliminate disparate impact liability theory from its antidiscrimination regulations with respect to federal grants and funding opportunities under Title VI of the 1964 Civil Rights Act.
  • In a copy of the rule published in The Federal Register, DOL said that the move amends its regulations to align with Title VI’s “original public meaning, avoid constitutional concerns, reduce compliance costs and serve the public interest.” The agency also cited President Donald Trump’s April 2025 executive order directing the federal government to end enforcement of disparate impact liability.
  • The rule took effect Thursday and is the latest in a long line of government actions following from Trump’s order. DOL said it had statutory, constitutional and policy concerns about its previous Title VI regulations, adding that the law permits facially neutral policies that result in disparate outcomes where there is no discriminatory intent by a funding recipient.

The Trump administration has targeted disparate impact liability on several employment law fronts in accordance with the president’s executive order, which called the legal theory a “pernicious movement” that endangers the “bedrock principle [...] that all citizens are treated equally under the law.”

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