The legal battle over workplace DEI programs has reached a critical moment. A federal court has temporarily blocked key provisions of the Trump administration’s executive orders restricting diversity, equity and inclusion (DEI) efforts in the public and private sectors. On February 21, 2025, U.S. District Judge Adam B. Abelson granted a preliminary injunction, ruling that the orders are likely unconstitutional due to vague language and restrictions on speech. The lawsuit, filed in a Maryland federal court by a coalition of DEI advocates — including chief diversity officers, professors, and business owners — challenges two executive orders:
- Executive Order 14151: Ending Radical and Wasteful Government DEI Programs and Preferencing
- Executive Order 14173: Ending Illegal Discrimination and Restoring Merit-Based Opportunity
The injunction blocks provisions that required federal agencies to terminate equity-related grants and contracts, mandated federal contractors to certify DEI adherence under the False Claims Act, and directed the attorney general to take enforcement action against private-sector DEI programs.
While the ruling is expected to be appealed, businesses should prepare for further legal developments that could impact workplace policies and compliance responsibilities.
A federal court has blocked key provisions of executive orders restricting workplace DEI programs, citing free speech and compliance concerns.
What Employers Should Do Now
1. Review Your DEI Programs
With the legal landscape shifting, companies must evaluate their existing DEI initiatives.
This includes:
- Auditing DEI training materials to ensure they comply with both current regulations and best practices
- Adjusting recruitment and hiring practices to align with evolving legal requirements
- Consulting legal counsel to determine how the executive orders could affect workplace policies
2. Maintain Transparent Communication
Organizations should keep employees informed about any changes to DEI initiatives while reaffirming their commitment to fostering inclusive workplaces.
Key actions include:
- Holding open discussions with employees about workplace diversity efforts
- Providing regular updates on any legal or policy changes affecting DEI training
- Ensuring that employees understand any adjustments to workplace inclusion efforts and why they are necessary
3. Monitor Legal Developments
The legal battle surrounding these executive orders is expected to be lengthy.
Employers should:
- Follow updates from the courts, the Office of Federal Contract Compliance Programs (OFCCP), and the U.S. Equal Employment Opportunity Commission (EEOC)
- Keep track of how these measures may affect labor law postings, such as the federal EEOC Know Your Rights poster
- Be prepared for additional lawsuits or federal guidance that may change DEI responsibilities
What’s Next for Employers?
Be aware: The Trump administration is expected to appeal this recent injunction, and the case could ultimately reach the Supreme Court. The outcome may determine whether these executive orders are upheld, modified or permanently struck down.
We will continue to monitor developments, including any potential changes to labor law posting requirements and compliance obligations.
