As of February 26, 2025, President Trump had signed 76 executive orders (EOs). A number of these orders have a direct or indirect impact on employers in the private sector. Some of these orders are being challenged in court. The result: there is considerable confusion about what to do. Here are some of the key orders that may impact small businesses and what you can or should do.
Ending Illegal Discrimination and Restoring Merit-Based Opportunity
EO 14173 ends race- and sex-based preferences under “diversity, equity, and inclusion” (DEI) or “diversity, equity, inclusion, and accessibility” (DEIA). Instead, nondiscrimination principals under the Civil Rights Act of 1964 and other federal laws (e.g., Americans with Disabilities Act) apply to protect the civil rights of all Americans and to promote individual initiative, excellence, and hard work. Technically, the EO applies to federal workers as well as federal contractors, but encourages all private sector employers to adopt the same action.
What to do:
Large corporations, including Amazon, Ford Motor Company, Google, Lowes, McDonald’s, Meta, Target, and Walmart, have begun to examine their DEI policies, and have either ended or watered them down. Small businesses that used DEI in hiring and promotion should probably also examine their policies in light of this EO. Keep in mind that the U.S. Supreme Court will hear a case of reverse discrimination involving an Ohio woman who claimed she was discriminated because she was heterosexual.
Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government
EO 14167 recognizes that there are two sexes—male and female—and lays out definitions to be used in federal law and administrative policy. It also directs the Attorney General to issue more guidance. This EO does not directly impact small businesses, but there could be indirect effects.
What to do:
All government-issued identification documents—passports, visas, and Global Entry cards—must reflect the holder’s sex as defined in the EO. So, employers who have globally-mobile employees holding U.S. passports should be sure they are in compliance. You may want to make revisions to your employee handbook to reflect the definitions set forth in this EO. And watch for further guidance issued by the Attorney General.
Establishing and Implementing the President’s “Department of Government Efficiency”
EO 14158 created DOGE to cut government waste. Toward this effect, by the end of February about 200,000 government employees have been fired or taken proffered severance packages. Many who were terminated have sued, and lawsuits are pending. Merit System Protection Board reinstated probationary workers, at least until April 10, 2025, while investigations continue.
What to do:
Some skills used by former federal employees are transferable to the private sector. Small businesses may have the opportunity to tap into a large pool of talented people looking for jobs. Pay attention.
Final thought
“Change before you have to.” ~ Jack Welch, CEO of General Electric between 1981 and 2001
Small businesses have to remain nimble to adapt to changes driven by a new Administration and a new Congress. Some of the changes will be favorable; others not so much. When it comes to changes in your workplace, if you have concerns, talk to an employment law attorney.
For more information regarding federal legislation and your business, see this list of blogs.
