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Sunday, June 22, 2025

Does Employer Disparate Impact Liability Still Exist? The Latest EO Pushes to Eliminate It - Jackson Lewis

Takeaways

  • Federal agencies are expected to limit their enforcement of disparate impact discrimination claims.
  • Employers should look to remove barriers to equal employment opportunity and avoid making any employment decision based on race, sex, or other protected characteristic.
  • Employers may soon receive agency guidance or technical assistance regarding appropriate methods to promote equal access to employment regardless of whether an applicant has a college education.

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Article

President Donald Trump issued the “Restoring Equality of Opportunity and Meritocracy” executive order (EO) on April 23, 2025. The stated purpose of the EO is “to eliminate the use of disparate-impact liability in all contexts to the maximum degree possible to avoid violating the Constitution, Federal civil rights laws, and basic American ideals.” But the “maximum degree possible” is more limited than the words suggest.

What Is Disparate Impact?

The typical discrimination claim is a disparate treatment claim where an individual allegedly is treated differently than someone else because of their race, sex, or other protected characteristic. A disparate impact theory of discrimination would find...



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