Navigating Legal Risk in Corporate DEI
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Recent executive orders from the new administration significantly impact private-sector companies, threatening investigations into those deemed to have “illegal” DEI programs. This article suggests broad ways that chief human resources officers (CHROs) and diversity leaders can prepare. However, The Conference Board suggests that companies consult with qualified legal counsel before making changes due to the complex nature of the issues and fast pace of developments in this area. This article has been prepared for informational purposes only and should not be taken as legal advice.

Key Insight

The impact of recent presidential directives extends beyond federal employees and contractors, as the administration seeks to influence broader corporate diversity practices. Government agencies have been asked to “combat illegal private-sector DEI preferences, mandates, policies, programs, and activities” and may investigate companies they deem to be in violation. This creates uncertainty for businesses regarding legal compliance and risks associated with existing policies, particularly those involving racial and gender preferences.

Recent executive orders from the new administration significantly impact private-sector companies, threatening investigations into those deemed to have “illegal” DEI programs. This article suggests broad ways that chief human resources officers (CHROs) and diversity leaders can prepare. However, The Conference Board suggests that companies consult with qualified legal counsel before making changes due to the complex nature of the issues and fast pace of developments in this area. This article has been prepared for informational purposes only and should not be taken as legal advice.

Key Insight

The impact of recent presidential directives extends beyond federal employees and contractors, as the administration seeks to influence broader corporate diversity practices. Government agencies have been asked to “combat illegal private-sector DEI preferences, mandates, policies, programs, and activities” and may investigate companies they deem to be in violation. This creates uncertainty for businesses regarding legal compliance and risks associated with existing policies, particularly those involving racial and gender preferences.

Authors

Camille A. Olson

Camille A. Olson Camille A. Olson

Partner
Seyfarth Shaw LLP

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Allan Schweyer

Allan Schweyer Allan Schweyer

Principal Researcher, Human Capital
The Conference Board

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