Federal Appeals Court Lifts Bar on DEI Executive Orders

DOL Files Appeal in Overtime Legal Challenge

by CUPA-HR | March 17, 2025

On March 14, the U.S. Court of Appeals for the 4th Circuit issued a decision allowing the Trump administration to enforce Executive Orders 14151 and 14173, both of which target “illegal … DEI preferences, mandates, policies, programs, and activities” in the public and private sectors and in federal contracts. The 4th Circuit’s decision effectively overrules a February 21 preliminary injunction issued in a U.S. District Court in Maryland that had blocked the administration from enforcing some provisions in the orders.

As a reminder, orders 14151 and 14173 revoke prior executive orders, including Executive Order 11246, which required federal contractors to maintain affirmative action plans. Among other things, orders 14151 and 14173 also mandate that:

  • federal agencies include provisions in federal contracts requiring that contractors agree to comply with nondiscrimination laws and certify they do not operate any DEI programs that violate discrimination laws;
  • the Office of Management and Budget terminate all “‘diversity,’ ‘equity,’ ‘equitable decision-making,’ ‘equitable deployment of financial and technical assistance,’ ‘advancing equity,’ and like mandates, requirements, programs, or activities, as appropriate;” and
  • each agency “identify up to nine potential civil compliance investigations of publicly traded corporations, large non-profit corporations or associations, foundations with assets of 500 million dollars or more, State and local bar and medical associations, and institutions of higher education with endowments over 1 billion dollars.”

CUPA-HR will continue to share further developments regarding the lawsuits challenging orders 14151 and 14173.

 



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