The recent changes in federal policies, including diversity, equity, inclusion and belonging (DEI&B) programs, impact federal agencies, federal contractors and those who receive federal grants. These developments could have implications for private employers as well.

To navigate regulatory updates, it is first important to understand the differences between executive orders, executive memoranda, and proclamations. Executive orders are legally binding directives from the President of the United States to federal agencies, often used to manage operations within the federal government. Executive memoranda, while similar, are less formal and do not require publication in the Federal Register. Proclamations, on the other hand, are primarily ceremonial and used to declare special observances or national holidays.

In 2025, President Donald Trump signed several executive orders, memoranda, and proclamations that impact private businesses. Here are some key actions:

1. Ending Illegal Discrimination and Restoring Merit-Based Opportunity: This executive order aims to rescind affirmative action and other anti-discrimination laws for federal contractors. It also directs agencies to enforce civil-rights laws and combat illegal private-sector DEI (Diversity, Equity, and Inclusion) preferences.
2. Amendment to Duties Addressing the Synthetic Opioid Supply Chain: This order focuses on addressing the synthetic opioid crisis by imposing stricter regulations on the supply chain.
3. Amendment to Duties to Address the Situation at Our Southern Border: This executive order enhances border security measures, which could affect businesses involved in cross-border trade.
4. Cybersecurity Enhancements: Several executive actions have been taken to strengthen cybersecurity requirements for private businesses, particularly those in critical infrastructure sectors.
5. Energy and Environmental Policies: New regulations and incentives have been introduced to promote energy independence and reduce environmental regulations, impacting businesses in the energy sector.

These actions reflect a broad range of policy areas, from civil rights to cybersecurity and environmental regulations, all of which have significant implications for private businesses.

1. Compliance with New Regulations

• Review and Revise DEI&B Programs: Conduct a thorough audit of your existing DEI&B initiatives to ensure they comply with the new legal framework. This includes revising any policies or practices that could be seen as providing preferential treatment based on any protected characteristic(s). Please note that private employers who are not federal contractors and/or receive federal grants may still be able to maintain and implement DEI&B policies, programs, and initiatives.
• Merit-Based Employment: Emphasize meritocracy in hiring promotions and performance evaluations. Ensure that all employment decisions are based on qualifications, experience, and performance.

2. Legal Risks and Mitigation

• Avoid Discriminatory Practices: DEI&B initiatives should always remain non-discriminatory in nature and foster inclusion. Ensure that any current policy, process, group, meeting, etc. is non-discriminatory and review any potential future policies, processes, initiatives, etc. with a critical eye.
• Documentation and Justification: Maintain thorough documentation on DEI&B initiatives. Ensure they are legally sound and based on permissible business considerations.

3. Proactive Strategies

• Internal Policy Review: Regularly review and update your DEI&B policies, training materials and workplace practices to align with any updated legal requirements and to ensure alignment with the practices being followed on a day-to-day basis.
• Seek Legal Guidance: Given the evolving landscape, consulting with an attorney can help navigate the complexities and ensure compliance with new regulations.

 4. Federal Contractor Considerations

• Affirmative Action Mandates: If you are a federal contractor, be aware that affirmative action requirements have been revoked. This means you are no longer subject to the affirmative action requirements. However, it is still required that any and all employment practices are not discriminatory against any protected class.

By staying informed and proactive, private employers can navigate these changes effectively while continuing to foster inclusive and equitable workplaces.

Other items to consider with the new administration:

Recent changes in federal agencies have significant implications for the private workforce. For instance, shifts in leadership or policy priorities at agencies like the Equal Employment Opportunity Commission (EEOC) or the Department of Labor (DOL) may lead to new compliance requirements for employers. Staying informed about these changes is essential for maintaining compliance and avoiding potential penalties.

The Fair Labor Standards Act (FLSA) continues to be a critical area of focus for employers. We may see updates to regulations governing minimum wage, overtime pay and child labor protections. Employers should stay vigilant and prepare for potential changes that could impact their payroll and labor practices.

As we look ahead, several policies and regulations are trending that warrant attention from employers. These include enhanced data privacy protections, increased scrutiny on gig economy practices and expanded family and medical leave provisions. Keeping an eye on these trends will help employers stay ahead of the curve and ensure compliance with emerging regulations.

Looking for additional guidance on how to traverse constantly changing compliance requirements? Get in touch with isolved HR Services today!

About Brad Harshaw: 

Brad Harshaw SHRM-SCP is an HR Business Partner on the isolved HR Services team, with over 30+ years of Human Resources experience. His expertise is employee relations, organizational behavioral development, and compliance in the small to mid-market. Brad’s 30+ years roles included Director of HR, HR Business Development, and HR Generalist for small to large organizations including a 20+ years as an Adjunct Faculty Member at a local College.

^[1] The information contained herein is provided for informational purposes only and does not constitute and should not be taken as legal advice on any subject matter. You should not act or refrain from acting on the basis of any content included herein without seeking the advice of an attorney.

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