Update on DEI—Federal Court Temporarily Blocks Most of the Administration’s DEI Orders, But Uncertainty Continues

On February 21, 2025, a federal court in Maryland issued a temporary restraining order (the “TRO”) blocking implementation, for now, of parts of the Executive Orders that the U.S. Administration issued relating to diversity, equity and inclusion (DEI) practices, including at private sector companies. Notwithstanding the TRO, uncertainty continues for companies as to what actions, […]

Mar 5, 2025 - 23:10
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Update on DEI—Federal Court Temporarily Blocks Most of the Administration’s DEI Orders, But Uncertainty Continues
Posted by Gail Weinstein, Philip Richter, and Steven Epstein, Fried, Frank, Harris, Shriver & Jacobson LLP, on Wednesday, March 5, 2025
Editor's Note:

Gail Weinstein is a Senior Counsel, Philip Richter is a Partner, and Steven Epstein is the Managing Partner, at Fried, Frank, Harris, Shriver & Jacobson LLP. This post is based on a Fried Frank memorandum by Ms. Weinstein, Mr. Richter, Mr. Epstein, and Steven J. Steinman.

On February 21, 2025, a federal court in Maryland issued a temporary restraining order (the “TRO”) blocking implementation, for now, of parts of the Executive Orders that the U.S. Administration issued relating to diversity, equity and inclusion (DEI) practices, including at private sector companies. Notwithstanding the TRO, uncertainty continues for companies as to what actions, if any, they should take with respect to their DEI policies, programs and practices. While the TRO temporarily blocks “enforcement actions” against private sector entities relating to their DEI policies and practices, it does not block the President’s directive to the U.S. Attorney General to develop a specific plan to eliminate “illegal DEI” in the private sector.

Below, we discuss:

  • the DEI-related Executive Orders (EOs);
  • internal government memoranda relating to implementation of the EOs (the “Memoranda”);
  • the TRO temporarily blocking parts of the EOs (issued in NADHOE v. Trump);
  • the other pending lawsuit challenging the EOs (National Urban League v. Trump);
  • a False Claims Act issue arising under the EOs;
  • a statement by the attorneys general of 16 states encouraging employers to continue DEI “best practices”;
  • statements by proxy advisory firms ISS and Glass Lewis; and
  • steps that some private sector companies have been taking in response to the EOs.

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