By Executive Order, President Trump Halts All Federal Agency Action on Disparate Impact Claims
On April 23, 2025, President Trump issued a sweeping executive order titled “Restoring Equality of Opportunity and Meritocracy,” signaling a significant shift in federal civil rights enforcement.
04.30.25
The order directs federal agencies to deprioritize enforcement of “disparate impact” liability—a legal doctrine that has, for decades, allowed challenges to facially neutral employment practices that disproportionately affect protected groups, even without evidence of intentional discrimination. While the legal framework for disparate impact remains intact under existing law, this policy shift alters how the federal government will prioritize and pursue related investigations, enforcement actions and regulatory oversight.
Understanding Disparate Impact Liability
Disparate impact liability is a key legal doctrine within U.S. anti-discrimination law designed to address the systematic effects of employment practices that, while neutral on their face, disproportionately harm members of protected classes when applied. Unlike disparate treatment, which targets intentional acts of discrimination, disparate impact focuses on outcomes—ensuring that seemingly neutral policies and practices do not result in unfair disadvantages. This legal theory was first recognized by the U.S. Supreme Court in Griggs v. Duke Power Co. 401 U.S. 424 (1971), and it has since been a cornerstone for enforcing anti-discrimination laws, including Title VII of the Civil Rights Act.
Key Provisions of the Executive Order
President Trump’s executive order aims to eliminate the use of disparate impact liability “to the maximum degree possible.” The executive order asserts that disparate impact liability “creates a near insurmountable presumption of unlawful discrimination” and undermines merit-based practices. To that end, the executive order directs federal agencies, including the Equal Employment Opportunity Commission (EEOC) and the Attorney General, to:
- Deprioritize enforcement of statutes and regulations that include disparate impact liability.
- Assess and repeal or amend regulations under Title VI of the Civil Rights Act that contemplate disparate impact liability.
- Review and take appropriate action on all pending investigations, civil suits or positions relying on disparate impact theory.
- Determine whether federal law preempts state laws imposing disparate impact liability and take appropriate measures based on those findings.
Preparing for the Road Ahead
While this executive order limits federal enforcement based on disparate impact, it does not eliminate the legal theory itself. Courts across the country—and private plaintiffs—can continue to pursue disparate impact claims under Title VII and other anti-discrimination statutes. In addition, many state and local laws continue to recognize and enforce disparate impact standards independently of federal policy. Accordingly, employers should not interpret this executive action as a license to relax their anti-discrimination practices. Instead, this shift calls for a proactive and strategic compliance approach that may include the following:
- Reviewing Employment Practices: Assess whether hiring criteria, promotion standards or other policies may have unintended disparate impacts.
- Documenting Business Necessity: Ensure that employment practices are job-related and consistent with business necessity, as this remains a key defense against disparate impact claims.
- Staying Informed on State Laws: Some states have their own anti-discrimination laws that may continue to enforce disparate impact standards.
- Monitoring Legal Developments: The executive order may face legal challenges, and its long-term impact on anti-discrimination enforcement is uncertain at this point.
In sum, President Trump’s executive order marks a significant redirection in the federal government’s civil rights enforcement strategy. While it may reduce the likelihood of federal disparate impact investigations, it does not eliminate employers’ exposure to such claims—especially from private litigants and under state laws. As this area of the law continues to evolve, employers should remain vigilant, stay informed and consult legal counsel as they adapt to these changes. Klehr Harrison’s Labor and Employment Practice Group will continue to monitor and report on this and other relevant matters.
Co-authors Lee Moylan, chair, and Monica Matias Quiñones, associate, are members of the labor & employment practice group at Klehr Harrison.