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Sunday, June 22, 2025

New Executive Order Targets Workplace Discrimination Law: Major Shift Away from Disparate Impact Liability - NatLawReview.com

The latest Executive Order signed by President Trump on April 23, 2025, titled "Restoring Equality of Opportunity and Meritocracy," eliminates disparate impact liability in federal employment policy. Learn how this change could impact workplace discrimination claims and DEI compliance.

It directs the Attorney General and the Equal Employment Opportunity Commission (EEOC), within 45 days of the order, to “assess all pending investigations, civil suits, or positions taken in ongoing matters under every federal civil rights law within their respective jurisdictions, including Title VII of the Civil Rights Act of 1964, that rely on a theory of disparate-impact liability…” It also directs other federal agencies to effectively do the same, some within 45 days and others within 90 days. And, the Attorney General and EEOC are directed to “formulate and issue guidance or technical assistance to employers regarding appropriate methods to promote equal access to employment regardless of whether an applicant has a college education, where appropriate.”

A Significant Shift in Workplace Discrimination Law

While framed as a return to merit-based employment practices, this sweeping Executive Order marks a significant change in how workplace discrimination claims—specifically disparate impact—will be evaluated under federal law.

But what does this mean for employees, employers, and HR professionals?

Let’s start with the basics:

Disparate Impact vs. Disparate Treatment Discrimination: What...



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