Federal Agencies Directed to End Enforcement of Disparate Impact Discrimination Claims Under President Trump’s New Executive Order
On April 23, 2025, President Trump issued an Executive Order entitled “ Restoring Equality of Opportunity and Meritocracy ” (“Executive Order”). This Executive Order is one in a series issued by President Trump with the goal of eliminating Diversity Equity and Inclusion (“DEI”) policies and practices . This Executive Order focuses on dismantling legal claims for discrimination based on a disparate impact theory of liability. Under the Title VII of the Civil Rights Act of 1964 and the California Fair Employment and Housing Act (“FEHA”), among many other federal and state laws, disparate impact liability exists where a neutral policy or practice is shown to have a disproportionately negative effect on a protected group, such as race, national origin, and gender, regardless of intent. There are various legal defenses to disparate impact claims , including showing that the policy or practice is “job-related” or based on a legitimate “business necessity.” Notwithstanding available affirmat...