Page 14 - Spring 2025

Navigating DEI in 2025:

What Businesses Need to Know

BY IDHR Consul�ng
An ACB Associate Member

The landscape of Diversity,
Equity, and Inclusion (DEI) is evolving in
2025 due to federal policy shi�s, legal
challenges, and changing agency
direc�ves. Businesses must stay
informed to ensure compliance and to
make the best decisions for their teams.
Changes in Federal DEI Policies
Recent execu�ve orders have
significantly altered the federal stance
on DEI. Execu�ve Order 14151 ended all
federally mandated DEI programs, while
EO 14173 focused on hiring based on
merit. These changes also led to the
shutdown of the Office of Federal
Contract Compliance Programs (OFCCP).
These changes mean federal agencies
will no longer oversee DEI rules.

Legal Challenges and Uncertainty
Li�ga�on is ongoing regarding these
execu�ve orders. A judge temporarily blocked the new orders, but that decision was later overturned. The Supreme Court may eventually decide on
the ma�er, so the situa�on is s�ll uncertain.

EEOC and OFCCP Updates
The Equal Employment Opportunity Commission (EEOC) con�nues to enforce an�-discrimina�on laws in the workplace. It has clarified that Title VII
applies to all workers, regardless of background, and that DEI-related training or policies must not create a hos�le work environment.

Meanwhile, the OFCCP has removed DEI guidance from its website and directed federal contractors to cease affirma�ve ac�on programs for
diversity. However, businesses s�ll need to follow rules protec�ng veterans and people with disabili�es.
Looking Ahead
Even though federal DEI requirements have been removed, many companies remain commi�ed to fostering inclusive workplaces. As regula�ons
shi�, IDHR Consul�ng can help businesses assess DEI strategies and adjust where needed. Through policy reviews, compliance support, and strategic
planning, organiza�ons can maintain their commitment to workplace equity while managing legal risks.

Arkansas Community Banker | 14 | Spring 2025