In the month since President Donald Trump's inauguration on January 20, 2025, his administration has implemented several significant changes to U.S. employment laws. Below are a few key changes that all business owners should keep be aware of:
Ban on Affirmative Action Programs
President Trump signed Executive Order 14173, titled "Ending Illegal Discrimination and Restoring Merit-Based Opportunity." This order prohibits federal departments from working with private businesses that have active DEI programs. This move by President Trump is intended to minimize or eliminate affirmative action programs among government contractors. The executive order also revokes certain provisions of Executive Order 11246, originally signed by President Lyndon B. Johnson in 1965, which required nondiscrimination and affirmative action for federal contractors.
Resignations and Terminations for Federal Workers
The new administration has initiated job terminations for thousands of federal employees and has put pressure on employees to prospectively voluntarily resign their employment in order to protect their income in the short-term. The newly formed Department of Government Efficiency is also requiring federal workers to "justify" their employment positions or face termination.
Policy Shifts in Labor Relations and Employment Practices
President Trump has rescinded several Biden-era legal memos relating to restrictive covenants and severance agreements. These changes afford more leniency to business owners, and fewer protections for workers. Additionally, the President appointed a new leader for the Equal Employment Opportunity Commission (EEOC), who has said that her priorities will be to focus on "unlawful DEI-motivated race and sex discrimination" and "defending the biological and binary reality of sex."
If you have questions about how these policy shifts affect you, your business, or your family and friends, please feel free to reach out to Employer-Lawyer for guidance.
