Anti-DEI Executive Orders: What Workers Need to Know

Quick answer: Recent anti-DEI executive orders have changed federal policy and created new requirements for federal contractors, but they have not eliminated workers’ existing protections against employment discrimination. Private employers remain subject to federal anti-discrimination laws, while federal contractors face additional requirements under Executive Order 14398, issued in March 2026.

Federal policy surrounding diversity, equity, and inclusion (DEI) has changed significantly since 2025. Some employers are restructuring DEI initiatives, federal contractors face new requirements, and federal agencies have increased scrutiny of employment practices involving protected characteristics.

What has not changed is equally important: federal employment discrimination laws remain in effect.

The workplace discrimination attorneys at Barrett & Farahany explain what the latest anti-DEI executive orders mean for private employers and workers.

What Do Anti-DEI Executive Orders Actually Do?

Executive Order 14173, issued in January 2025, marked a major shift in federal DEI policy. Among other actions, it revoked Executive Order 11246, which had imposed affirmative-action requirements on certain federal contractors, and directed federal agencies to address private-sector DEI practices that the administration considers unlawful discrimination.

Federal policy changed further in March 2026.

On March 26, 2026, President Trump issued Executive Order 14398, “Addressing DEI Discrimination by Federal Contractors.” The order focuses specifically on federal contractors and subcontractors and addresses certain forms of disparate treatment based on race or ethnicity in areas such as recruitment, employment, contracting, program participation, and allocation of resources.

Under the order:

• Covered federal contracts must include new DEI-related provisions. Contractors must agree not to engage in defined “racially discriminatory DEI activities” in connection with performance of covered contracts.
• Recruitment and employment practices may be affected. The order addresses certain race- or ethnicity-based treatment involving recruitment, employment, contracting, program participation, and allocation of resources.
• Contractors may face additional compliance obligations. These can include providing records and information necessary to evaluate compliance and reporting certain subcontractor violations.
• Noncompliance can carry significant consequences. Potential consequences include contract cancellation, termination or suspension, suspension or debarment, and False Claims Act enforcement.

Importantly, these executive orders do not declare every program labeled “DEI” unlawful. Whether a program creates legal concerns depends on how it operates and whether employment decisions or opportunities are provided or denied because of protected characteristics.

How These Orders Affect Your Employer

The effect depends significantly on whether your employer does business with the federal government.

What Changes for Federal Contractors?

Federal contractors and subcontractors face the most direct impact from EO 14398. Covered contracts must include provisions addressing racially discriminatory DEI activities, and contractors may have additional compliance and reporting obligations.

As a result, federal contractors may review hiring and promotion practices, mentoring programs, training opportunities, vendor programs, and other initiatives that use race or ethnicity as a factor.

This does not necessarily mean every diversity or inclusion initiative must disappear. The important question is how the program operates and whether it treats employees, applicants, contractors, or program participants differently in violation of applicable law or federal contracting requirements.

What About Other Private Employers?

Private employers that do not contract with the federal government generally are not directly subject to EO 14398’s federal-contract requirements.

They remain subject to applicable federal employment discrimination laws. EO 14173 also directed federal agencies to address private-sector practices that the administration considers unlawful discrimination.

This increased scrutiny may lead private employers to review DEI programs even when they do not have federal contracts.

Will Companies Scale Back DEI Programs?

Some employers may restructure or discontinue DEI initiatives, while others may retain them with different eligibility requirements or selection criteria.

Employee resource groups (ERGs), mentorship programs, diversity training, recruiting initiatives, and leadership-development programs may receive additional scrutiny when access to employment opportunities depends on race, sex, or another protected characteristic.

The existence of a DEI or inclusion initiative does not by itself determine whether the program violates federal employment law. How the program operates matters.

How These Changes Affect You as a Worker

Changes to Support Networks and Mentorship

Workers may see changes to ERGs, targeted mentorship programs, or diversity-focused development opportunities. Employers might open programs to broader groups of employees, change selection criteria, or restructure programs around professional experience rather than demographic characteristics.

For employees who relied on these programs for mentorship and professional support, these changes may meaningfully affect their workplace experience.

What Merit-Based Evaluation Means for Your Career

Employers may increasingly emphasize individualized qualifications and job-related criteria when making hiring, promotion, training, and leadership decisions.

However, describing an employment system as “merit-based” does not automatically make it lawful. Employers still cannot use supposedly neutral criteria as a cover for unlawful discrimination.

If you believe you were denied a job, promotion, compensation, training opportunity, or another employment benefit because of a protected characteristic, you may still have rights under federal or state anti-discrimination laws.

Your Legal Protections Remain in Place

The anti-DEI executive orders did not repeal the major federal employment discrimination statutes.

Title VII of the Civil Rights Act continues to prohibit covered employers from discriminating based on race, color, religion, sex, or national origin.

The Americans with Disabilities Act continues to protect qualified individuals with disabilities, while the Age Discrimination in Employment Act continues to protect covered workers age 40 and older from age discrimination.

Workers also remain protected from unlawful retaliation for opposing discrimination or participating in protected complaint or investigation processes.

Executive orders changing federal DEI policy do not give employers permission to discriminate.

Know Your Rights, and Know When to Act

Federal DEI policy has changed considerably since 2025, and the March 2026 executive order adds another layer of requirements for federal contractors and subcontractors.

For workers, however, the central question remains whether an employment decision violates applicable anti-discrimination law.

Pay attention to changes involving hiring, promotions, mentorship programs, training opportunities, compensation, and other workplace policies. If you believe you have experienced racial discrimination or another form of unlawful workplace discrimination, contact Barrett & Farahany. Our legal team can review your situation and help you understand your options.

Frequently Asked Questions

Do anti-DEI executive orders apply to private employers?

It depends. Private employers that are federal contractors or subcontractors may be directly affected by federal contracting requirements, including EO 14398. Other private employers generally are not directly subject to those contractual requirements but remain subject to applicable federal and state anti-discrimination laws.

What did the March 2026 DEI executive order change?

Executive Order 14398 requires covered federal contracts to include provisions prohibiting contractors and subcontractors from engaging in defined “racially discriminatory DEI activities.” It also provides for compliance obligations and potential consequences including contract termination, suspension, debarment, and False Claims Act enforcement.

Can my employer eliminate ERGs or diversity training programs?

Private employers generally have discretion to restructure or discontinue voluntary workplace programs, subject to applicable employment laws and contractual obligations. Employers may also continue inclusion initiatives, but those programs must comply with applicable anti-discrimination laws.

Are all DEI programs now illegal?

No. The executive orders do not declare every program labeled DEI unlawful. The legal analysis depends on how a particular program operates, including whether it results in prohibited differential treatment based on protected characteristics.

What should I do if I think I’ve been discriminated against at work?

Document what happened and preserve relevant emails, messages, policies, performance records, and other evidence. Depending on the circumstances, you may be able to file a charge with the Equal Employment Opportunity Commission or pursue protections under state law. You may also consult an employment attorney about your options and applicable deadlines.