News Alert

On April 23, 2025, President Trump issued an executive order (EO) titled “Restoring Equality of Opportunity and Meritocracy,” directing federal agencies to eliminate reliance on disparate-impact liability. In explaining its purpose, the order provides that disparate-impact theory – where statistical disparities among racial or gender groups may trigger liability absent discriminatory intent – undermines constitutional principles of equal protection and merit-based decision-making in various contexts.

The EO seeks to lay the foundation for preemption of state-law disparate-impact protections. More specifically, the EO directs federal agencies to deprioritize enforcement of statutes and regulations that rely on disparate-impact liability. It also instructs the Attorney General to repeal or revise agency regulations that incorporate disparate-impact standards as well as identify, amend, repeal, or challenge federal and state laws that do the same. Agencies are also instructed to promote equal employment access, including alternatives to college-degree requirements.

While the EO reshapes federal enforcement priorities, it does not change existing federal law or eliminate disparate-impact liability under Title VII, the ADA, ADEA, or state anti-discrimination statutes. Private plaintiffs can still pursue disparate-impact claims, and state regulators may continue enforcement. Employers should maintain compliance with applicable laws and continue conducting adverse analyses – particularly in hiring, layoffs, and algorithmic decision-making.

Legal counsel should guide these reviews to ensure strategic enlightenment with ongoing regulatory guidance.

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