Challenges to DEI Restrictions Cause More Confusion
April 4, 2025
Last week, we wrote about the guidance issued by the EEOC regarding actions or policies that could be considered illegal DEI. (click here to read our post!)
There has been some confusion regarding the guidance issued by the EEOC in its application. These additional factors feed into the uncertainty surrounding DEI practices:
- A federal court issued a limited temporary injunction against the U.S. Department of Labor (“DOL”) attempting to enforce “illegal DEI” measures. A partially federally funded nonprofit focused on supporting women in skilled trades immediately felt the effect of EO 14151 and EO 14173 when a partner canceled its subcontract, citing being in violation of both executive orders. “The Court concludes that the [executive order] is likely a coercive threat…selectively targeting speech regarding DEI, DEIA, and equity based on a belief that such programs are ‘immoral,’ i.e., disfavored by the government.” This injunction is not widespread, it applies to the nonprofit challenging the order and any grantee through which it holds a subcontract. However, the court additionally barred the DOL from enforcing the requirement that grantees certify they don’t operate any DEI-promoting programs—even outside of their grants. This applies nationwide to all DOL grantees.
- Massachusetts attorneys have told Massachusetts Lawyers Weekly they are less concerned about the guidance issued on two counts: 1) the EEOC and the executive orders are unable to override established law and precedent. While the EEOC could seek investigation, which would bring undue costs to employers, it would be unlikely to lead to further legal action. 2) The guidance is much the same as it was before, but with more of a focus on practices during an employee’s term of employment. The EEOC has historically focused on hiring and firing practices.
- The EEOC’s acting chair publicly requested information from 20 law firms regarding their DEI-related employment practices going back to 2015. Andrea Lucas, EEOC head, stated in her letters to the 20 firms that the investigation is based on public statements the firms previously made regarding their diverse hiring practices.
Take Aways
- Seek review of handbooks and company policies to ensure compliance before an investigation could take place.
- If you accept federal funding, do not expand any DEI programs until the guidelines are solidly established between the courts and the administration. Try to avoid a knee jerk reaction of immediately cutting all DEI programs as they may remain legal. Please reach out to The Royal Law Firm to help you navigate this ever-changing terrain.
“An ounce of prevention is worth a pound of cure.” – Benjamin Franklin
If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.
On June 27, 2025, the U.S. Supreme Court ruled in Trump v. CASA that federal district courts cannot block executive orders for the entire country. The Court held that such broad injunctions exceed the authority Congress granted under the Judiciary Act of 1789. Courts may now only stop enforcement for the parties in the case—not for everyone else. What Happened in the Case President Trump issued Executive Order 14160 in early 2025. It denies birthright citizenship to children born in the U.S. if neither parent is a citizen or lawful permanent resident. Multiple lawsuits followed. Three federal courts blocked the order nationwide. The Supreme Court disagreed. It sent the case back and told the lower courts to revise the injunctions to cover only the named plaintiffs. The Court did not decide whether the order itself violates the Constitution. It ruled only on how far a court’s injunction can reach. Why It Matters to Employers The ruling affects how quickly and widely federal courts can stop controversial policies, especially during fast-changing political cycles. Employers have often relied on national injunctions to pause new mandates on wages, workplace safety, pay transparency, and non-compete agreements. This decision limits that option. The Court said nothing about injunctions under the Administrative Procedure Act, which governs agency rules. But the opinion raises doubts about whether even those can continue on a nationwide scale. Justice Kavanaugh suggested they might, but the Court left that question for another day. What This Means for You No nationwide protection unless you sue If your business is not part of the case, you likely cannot rely on someone else’s win. You must litigate directly to get relief. Rules may take effect in one state and not another A federal court in Texas may block a rule, while a court in New York upholds it. National companies may face conflicting rules and inconsistent enforcement. Trade groups cannot shield you Even if your industry association wins an injunction, it may apply only to their members or to the parties named in the lawsuit. Older rulings may now shrink Past national injunctions—on vaccine mandates, non-compete bans, overtime rules, or joint-employer standards—could be challenged or narrowed based on this ruling. More class actions are likely Some plaintiffs may now push for class certification to restore broader relief. Employers could face more complex litigation as a result. Next Steps for Employers Identify any current or past rules your business has relied on that are being blocked nationwide. Confirm whether you were covered by name or just assumed you were protected. Reassess your risk exposure for pending federal actions under OSHA, the EEOC, the DOL, or the NLRB. Monitor APA-based injunctions to see whether courts continue to grant broad relief under that statute. Consider joining strategic litigation early if new executive orders or agency rules would harm your operations. You cannot assume another company’s lawsuit will protect you. The Court narrowed that path. To block a federal mandate, you may now need to act alone—or join the fight directly. Michael P. Lewis is an attorney at The Royal Law Firm with experience advising clients through the litigation process. Michael helps employers resolve workplace challenges with focus, precision, and judgment. He counsels and defends businesses across Massachusetts and Connecticut, handling matters involving discrimination, harassment, retaliation, wage and hour claims, restrictive covenants, and breach of contract. His practice includes litigation in state and federal courts and before administrative agencies. If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.
Welcome Michael!
