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Monday, June 23, 2025

Federal Court Puts Brakes on Trump-Era DEI Ban for Contractors: What California Employers Need to Know - CA Labor Law blog

Topics: Discrimination, Harassment & Retaliation, Employee Hiring, Discipline & Termination, Legal Information

Federal courts continue to navigate the Diversity, Equity, and Inclusion (“DEI”) landscape including Executive Orders targeting DEI. In a recent development last week, U.S. District Judge Matthew Kennelly granted a preliminary injunction against the United States Department of Labor (“DOL”) from enforcing the Executive Order titled “Ending Radical and Wasteful Government DEI Programs and Preferencing” issued by President Trump on January 20, 2025 that effectively bans DEI programs for federal contractors and grantees.

The ruling in Chicago Women in Trades v. Trump (N.D. Ill., No. 1:25-cv-2005) extends a prior temporary restraining order, concluding that requiring contractors to certify non-participation in DEI programs likely violates their First Amendment rights. There, Chicago Women in Trades, a nonprofit that provides job training to women, challenged the requirement for contractors to certify that they do not operate DEI programs.

The court stated, “Although the government emphasized, both in its briefing and at oral argument, that the certification provision implicates only illegal DEI programs, it has studiously declined to shed any light on what this means. The answer is anything but obvious.” The court found requiring such certification likely violates the non-profit’s free-speech rights under the Constitution. The court declined to extend the...



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