Executive Order Aims to Repeal Disparate Impact Liability

1.5 minute read

On April 23, 2025, President Donald Trump issued an executive order (EO) to repeal disparate impact liability under Title VII of the Civil Rights Act and other federal antidiscrimination laws, aiming to reduce potential discrimination claims.

Background

Federal discrimination claims require evidence of either disparate treatment or impact based on a protected class (e.g., race, color, religion, sex, national origin). Disparate treatment involves less favorable treatment due to a protected class, while disparate impact involves policies adversely affecting a protected class, regardless of intent.

Overview of EO

Trump’s EO seeks to eliminate disparate impact liability, preventing employer accountability for neutral practices affecting protected classes. The EO orders:

• Federal agencies like the Equal Employment Opportunity Commission (EEOC) to reduce focus on enforcing statutes and regulations related to disparate impact liability;
• The U.S. attorney general is tasked with revising Title VII regulations on disparate impact liability and reporting on related laws and guidance within 30 days, proposing necessary changes;
• Within 45 days of the EO, the U.S. attorney general and EEOC chair will review ongoing investigations and cases involving disparate impact theory; and
• Federal agencies must review and act on existing consent judgments and injunctions based on disparate impact liability within 90 days of the EO.

The EO also directs the attorney general and EEOC chair to issue guidance on ensuring equal employment access, regardless of college education.

Employer Takeaway

The EO aims to revise federal discrimination laws. Although it doesn't immediately change current employment laws, employers should watch for updates from the EEOC and other federal agencies soon. Download the bulletin for more details.