SHRM’s Top 5 EOs That Will Impact the Workplace

During the first week of his term, President Donald Trump issued over 28 presidential actions, including executive orders (EOs), proclamations, and memorandums addressing a range of workplace issues from diversity, equity, and inclusion (DEI); immigration; and federal regulations. Below are five EOs that SHRM has identified as having a significant impact on work, workers, and the workplace. 

1.     DEI in the Federal Government, Federal Contracting, and the Private Sector

As he indicated he would during his campaign, Trump issued EOs to address the use of DEI (sometimes known as DEIA to include accessibility) programs that will impact the federal workforce, federal contract compliance, and the private sector. 

For the federal government, Trump’s Jan. 20 EO titled Ending Radical and Wasteful Government DEI Programs and Preferencing instructs agencies to terminate all equity action plans, initiatives, programs, grants, contracts, and DEI or DEIA performance requirements within 60 days, to the extent permitted by law. The changes to the federal workforce have already been seen, as employees in federal DEI and DEIA offices have been placed on paid administrative leave “effective immediately.”

For private-sector employers—both those that contract with the federal government and those that do not—Trump’s Jan. 21 EO titled Ending Illegal Discrimination and Restoring Merit-Based Opportunity could result in significant changes. For federal contractors, the EO repeals the 1965 Executive Order 11246 and orders the Office of Federal Contract Compliance Programs (OFCCP) to immediately cease “promoting ‘diversity,’ ” “holding [f]ederal contractors and subcontractors to ‘affirmative action’ programs, and “allowing or encouraging [f]ederal contractors and subcontractors to engage in workforce balancing based on race, color, sex, sexual preference, religion, or national origin.” 

The same EO also mentions the private sector, aiming to eliminate what the administration deems illegal discrimination and preferences tied to DEI initiatives. It mandates that the U.S. attorney general and relevant agencies propose enforcement strategies within 120 days, targeting sectors with significant violations and identifying key entities, including large corporations, nonprofits, foundations, professional associations, and well-endowed educational institutions, for potential civil compliance investigations.

2.     Regulatory Agencies Impact

Trump’s Jan. 20 EO titled Regulatory Freeze Pending Review will impact agencies that issue regulations. This EO mandates a halt on new rule proposals and issuances, pending review and approval by presidential appointees. Unpublished rules must be withdrawn, and the effective dates of published rules not yet in force are postponed for 60 daysfor review. The postponement of effective dates and public comment periods will impact regulatory compliance, workplace policies, and the overall regulatory environment, affecting businesses and industries awaiting new regulations,as well as those that have already invested in compliance.

3.     Federal AI Guidance Revoked 

On Jan. 20, Trump also rescinded former President Joe Biden’s Executive Order 14110, which was issued on Oct. 30, 2023. Biden’s EO was a comprehensive approach to responsible AI development that involved several key strategies. However, on Jan. 22 President Trump announced a multibillion-dollar investment by private tech companies, called the Stargate Project, to develop artificial intelligence infrastructure in the U.S.[GC1]  Followed by an EO issued on  Jan. 23 titled: Removing Barriers to American Leadership in Artificial Intelligence: aimed to solidify the United States' position as the global leader in AI by promoting innovation and removing any obstacles to its development. The main directive is the development of an AI Action Plan to sustain and enhance America’s global AI.

4.     Increased Screening for Foreign Nationals

Among a slew of immigration-related EOs, Trump issued one on Jan. 20 Protecting the United States from Foreign Terrorists and Other National Security and Public Safety Threats. This EO concerns enhanced vetting and screening of foreign nationals seeking to live in the U.S. It instructs federal agencies to identify all resources that may be used to ensure that all foreign nationals seeking admission to the U.S., or who are already in the U.S., are vetted and screened to the maximum degree possible. Enhanced vetting and screening of people seeking admission to the U.S. will impact hiring processes for businesses and organizations that employ these individuals.

5.     Changes in Federal Workforce Policies

As the president of the U.S., Trump can also dictate the employment terms and conditions of federal employees within the confines of the law. His Jan. 20 EO titled Return to In-Person Work reflects this principle. This EO directs department and agency heads within the executive branch to end remote-work arrangements and require employees to return to in-person, full-time work at their duty stations, with exemptions allowed at their discretion. The broader impact may be that communities and businesses with a large presence of federal workers will see an increase in commuting back to worksites. Additionally, as the nation’s largest employer, the federal government may serve as a model for the private sector in many respects and continue to drive the return-to-office momentum.