Are Trump’s Executive Orders Really Affecting Private Employers? 5 Reality Checks

In January, Donald Trump’s first-day executive orders targeted federal agencies and threatened to trickle down to private employers.

The question now is: Are Trump’s executive orders really affecting employers?

New data from various sources gives us insight to help HR professionals and their companies move forward.

Breaking Down Trump’s Executive Orders

We broke down the orders most likely to impact HR and private employers when they were released. And now that they’ve had time to be executed — and challenged — we have a better picture of if or how they’re affecting private businesses.

Here’s what we’ve learned:

1. DEI Executive Orders

First things first: These two orders related to Diversity, Equity and Inclusion (DEI) were challenged, halted, then reinstated:

• Ending Illegal Discrimination and Restoring Merit-Based Opportunity, which rescinded all DEI programs and practices across executive departments and agencies. It also directed agencies to encourage the private sector to end DEI. Our in-depth coverage is here: Trump Targets DEI Hiring, Promoting: How It Can Affect Private Employers.
• Ending Radical and Wasteful Government DEI Programs and Preferencing, which terminated all discriminatory programs including DEI and diversity, equity, inclusion and accessibility (DEIA) mandates. It revised federal employment practices to reward individual initiative and performance. Our in-depth coverage is here: Trump Dismantles DEI Programs: What It Means for HR Pros.

Within two weeks of the executive orders, four plaintiffs joined forces to file the lawsuit to block the implementation of key provisions within them. And the court granted the request for a preliminary injunction.

The decision was a fragile win for employers, our employment law expert, Tom D’Agostino noted.

And it didn’t last long: The government filed an appeal, requesting a stay on the ruling. Several weeks later, a three-judge panel of the U.S. Court of Appeals for the Fourth Circuit issued a decision, concurring that a stay was warranted. To note, two of the three judges expressed clear support for DEI programs.

Reality Check

It appears some companies will pull back on their initiatives — or not move forward aggressively.

About half of C-suite leaders don’t plan rollbacks of their DEI programs as a result of the executive orders, according to Littler’s 2025 Inclusion, Equity, and Diversity C-Suite Survey Report. Less than 10% are seriously considering changes.  

More than half of C-suite leaders surveyed after the inauguration said the anti-DEI policies and/or rhetoric would likely decrease corporate commitments in 2025. Still, 60% say they’ll wait on developments in enforcement plans, DEI lawsuits, regulations and contract implications before making changes.

Of those companies that are considering scaling back DEI efforts, here’s what they might do, according to the Littler study:

• 61% are weighing whether they’ll remove or reduce DEI-related language from their websites, proxy statements, and/or outward-facing communications
• 22% are considering reducing or eliminating DEI-focused roles
• 28% are considering rollbacks on employee resource or affinity groups
• 52% are considering eliminating DEI benchmarks and/or metrics, and
• 38% are contemplating ending incentives or manager evaluation criteria tied to advancing IE&D priorities. 

“While the letter of the law governing {DEI} programs remains unchanged, the risk of investigations and lawsuits is amplified by the Trump administration’s regulatory priorities,” said Kate Mrkonich Wilson, Littler shareholder and member of the firm’s IE&D Consulting Practice. “As a result, it’s more important than ever for private sector companies to carefully review their IE&D practices for any potential vulnerabilities to guide compliance with longstanding anti-discrimination laws.” 

2. Employment Executive Orders

Trump delivered two orders that impacted federal employees and how or if they worked:

• Hiring Freeze. The executive order stopped hiring within the federal government with the exception of military personnel and positions in immigration enforcement, national security or public safety.
• Return to In-Person Work. Simply put, Trump’s order ended remote work arrangements and required employees to return to in-person work. Our in-depth coverage is here: Trump Halts Remote Work: What It Could Mean for Your Company.

The administration offered buyouts to employees who didn’t want to return to work full-time, and some departments flat-out downsized.

Reality Check

The pushout appears real: Unemployment claims in Washington, D.C., are up over 320% from last year.

Meanwhile, the national unemployment rate edged up slightly to 4.1% in that time. And while nearly every sector gained or maintained jobs, the federal government lost 10,000 jobs in the first months of the year.

So is the government’s rollback on remote work affecting private businesses yet? Perhaps.

According to data from Robert Half, the number of fully remote and full-time on-site jobs have been declining in the past year. So, as you might imagine, hybrid, flexible work arrangements are on the rise.

Is that the way corporate America will continue to go? If you want the best job candidates, you’ll want to maintain remote and hybrid work. And here’s the ironic part: Just days before the inauguration, a study by the Office of Personnel Management found “remote announcements attract a larger, more qualified, and more diverse candidate pool than non-remote positions … The larger applicant pool is more diverse in terms of race, ability, sex, and veteran status, and selections are more diverse but do not disfavor other groups.”

3. Efficiency Executive Order

Efficiency was at the root of many executive orders, but this one was the juggernaut:

• Establishing and Implementing the President’s “Department Of Government Efficiency. It was put in place to improve government operations and modernize federal technology and software. Our in-depth coverage is here: DOGE’s Sweeping Changes of Federal Agencies: Here’s the Latest.

Reality Check

Private companies are concerned – and will potentially become cautious – over the DOGE effect. In one analysis of more than 130 companies across 30 industries, leaders said they had to address — with employees and/or shareholders — whether DOGE would impact their business.

The biggest impact they cited was government contracts. Those have a major trickle-down effect, as the companies with the contracts rely on many private sector employers of all shapes and sizes to make the contracts happen.

Plus, federal spending cuts will affect the economy, according to Jack Ablin, CFA, Chief Investment Officer and Founding Partner at Cresset. With job cuts come unemployment claims and reductions in personal spending. And as the government tightens its belt, economic growth will likely shrink.

But some good news from Ablin: “While the prospect of slower economic growth this year is real, we believe the prospect for recession in 2025 is remote.”

4. Technology Executive Order

Closely linked to Trump’s DOGE edicts was his AI directive:

• Removing Barriers to American Leadership in Artificial Intelligence, which was aimed at dismantling perceived barriers to AI innovation. Our in-depth coverage is here: Trump Order Aims to Reshape AI: How the Strategy Will Impact HR’s Role.

Reality Check

As far as AI, Trump’s executive order was meant to loosen any government reins on AI innovation and use. Industries and companies are more responsible than ever for AI implementation and use. Some could flourish and some could flounder.

Because of that, SHRM recommends that private employers “develop strategic AI integration plans that balance technological advancements with workforce needs. Upskilling and reskilling employees will be critical to address potential displacement caused by automation.” 

“We need policies that address AI-driven job displacement and the growing skills gap. We must invest in upskilling, reskilling, and education reform. AI isn’t just a disruptor; it’s a tool that, when paired with human intelligence, can unlock new opportunities and drive innovation,” says SHRM president and CEO Johnny C. Taylor, Jr.

5. Immigration Executive Order

Trump’s order targeting illegal immigration impacts employers.

• Protecting the American People Against Invasion forces in all states to address Temporary Protected Status and employment authorization in general.

Reality Check

There’s no wait-and-see on this one. Fortunately, we’ve already outlined what employers should do to stay compliant with their payroll and employment standards in our in-depth coverage here: Immigration and Nationality Act: Trump Steps Up Enforcement.