A new April 23, 2025, Executive Order from President Trump directs federal agencies to move away from the use of disparate impact theory of discrimination in civil rights enforcement, marking a significant shift in federal priorities. Although this change may lead to fewer federal investigations and enforcement actions based on statistical disparities, it does not alter existing anti-discrimination laws or court precedents and private lawsuits and state enforcement actions remain a real risk for employers.
In this uncertain environment, employers should continue to assess workplace policies, hiring practices, promotion criteria, and disciplinary and termination actions for potential adverse impacts on protected groups, while maintaining strong documentation and ensuring practices are job-related and consistent with business necessity.
To read more about this development, please see our recent legal alert here.