Each week, Liebert Cassidy Whitmore provides a summary of newly issued Executive Orders and other significant Presidential and federal actions that have a foreseeable impact on governance, compliance, and operational policies for California employers. The summaries below outline the key provisions of each action, along with our brief analysis of their potential implications for municipal agencies, school districts, nonprofits, and private schools.
UPDATE: Federal Judge Blocks Enforcement of DEI Executive Orders (February 21, 2025)
On February 21, 2025, a U.S. District Judge in Baltimore granted a preliminary injunction blocking the enforcement of two Executive Orders targeting diversity, equity, and inclusion (DEI) activity among federal agencies and recipients of federal funding, including the January 21, 2025 Order entitled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” The judge found that the Orders are likely unconstitutionally vague and chill freedom of speech.
Specifically, the injunction blocks three key provisions of two Orders issued by President Trump in his first days in office: (1) a provision that required federal agencies to terminate “equity-related grants or contracts,” (2) a provision that required federal contractors and subcontractors to certify that they do not operate unlawful DEI programs, and (3) a provision directing the Attorney General to enforce civil rights laws against DEI programs in the private sector. This means that the administration is temporarily prohibited from terminating or changing federal contracts based on the administration’s determination that the contractor promotes DEI.
Executive Action: Radical Transparency About Wasteful Spending (February 18, 2025)
On February 18, 2025, President Donald Trump issued a Presidential Action titled “Radical Transparency About Wasteful Spending,” designed to reduce excess spending on programs, contracts, and grants that do not “promote the interests of the American people.”
This Action directs the heads of executive departments to make accessible to the public the complete details of every terminated program, contract, grant, or other discontinued obligation of federal funds.
This Action may have an impact on public agencies, educational institutions, and nonprofit organizations that have received federal funds or have contracted with the federal government, but it does not set forth any reporting requirement for such entities. LCW will continue to monitor this Action to track activity that impacts California public agencies or educational institutions.
Executive Order: Ensuring Lawful Governance and Implementing the President’s ‘Department of Government Efficiency’ Deregulatory Initiative (February 19, 2025)
On February 19, 2025, President Donald Trump signed an Executive Order titled, “Ensuring Lawful Governance and Implementing the President’s ‘Department of Government Efficiency’ Deregulatory Initiative” designed to reduce what the Order describes as “overbearing and burdensome” regulations.
The Order directs Executive Agency heads to initiate a process within 60 days from its issuance, identifying regulations that “raise constitutional difficulties,” regulations that “implicate matters of social, political, or economic significance,” and all other regulations that are “unlawful,” or undermine the national interest. The Order does not define the above quoted terms, and at this juncture, it is unclear what types of regulations might be considered “unlawful.
The Order directs executive agencies to de-prioritize enforcing regulations that go beyond the powers vested in the federal government, and to continue following the process set forth in the President’s January 31st Order titled “Unleashing Prosperity Through Deregulation.” That process mandates that for every new regulation that a federal agency introduces, the agency must identify at least ten existing regulations for repeal.
This Order does not appear to have an immediate impact on employers in California. The Order will inform future regulatory activity by federal agencies such as the Equal Employment Opportunity Commission (EEOC), the Occupational Health and Safety Administration (OSHA), and other agencies that enforce rules that apply to employers. LCW will continue to monitor federal regulatory activity that impacts employers in California.
PREVIEW: The National Labor Relations Board (NLRB) has begun rescinding Biden-era guidance memos and enacting President Trump’s Executive Orders. LCW will publish a full Special Bulletin on NLRB activity this week.