• Skip to primary navigation
  • Skip to main content

HRMorning

  • FREE RESOURCES
  • PREMIUM CONTENT
  • HR DEEP DIVES
  • PODCASTS
    • VOICES OF HR
    • WOMEN’S LEADERSHIP TODAY
  • LOGIN
  • SIGN UP FREE
  • Employment Law
  • Benefits
  • Recruiting
  • HR Technology
  • Payroll
  • Management
  • Women’s Leadership
  • More
    • Talent Management
    • Performance Management
    • Leadership & Strategy
    • Compensation
    • Policy & Procedures
    • Wellness
    • Staff Departure
    • HR Career & Self-Care
    • Health Care
    • Retirement Plans
  • Employment Law

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

Michele McGovern
By: Michele McGovern
  • Share on

About the Author

Michele McGovern writes. A lot. These days, she covers HR, digging deep into company culture, DEI, leadership, management and the everchanging world of work. In the years between getting a BA in journalism from a state school and writing about HR, she wrote about big-city crime for a wire service and small-town life for local newspapers. She’s a mediocre mom, decent wife, wannabe athlete and consummate pursuer of fun - on land, snow and water. Find her on LinkedIn @michele-mcgovern-writer.

Show Less
Last Updated: April 14, 2025
7 minute engagement
Are Trump's Executive Orders Really Affecting Private Employers? 4 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  • Ending Illegal Discrimination and Restoring Merit-Based Opportunity, which rescinded all DEI programs and practices across executive departments and agencies.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.

Filed under
  • Employment Law
  • Share on

Get the HRMorning Newsletter

With HRMorning arriving in your inbox, you will never miss critical stories on labor laws, benefits, retention and onboarding strategies.

  • This field is for validation purposes and should be left unchanged.
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form

Free Training & Resources

Webinars

Staying Healthy in a Changing Work Environment

White Papers

Top Benefits of Time and Labor Software: Time for Technology

Provided by PeopleGuru

White Papers

One Botched Harassment Investigation Away From a Lawsuit

Provided by Navex

Webinars

Surviving as a One Person HR Department in a Post-Pandemic World

SPONSORED CONTENT

HR Technology

sponsored content
The Best AI Software for HR Automation

Courtesy of G-P

Talent Management

sponsored content
Powerful Employee Retention Strategies for 2025: How to Keep Your Best People

Courtesy of PEOPLEGURU

Benefits

Health Care

Wellness

sponsored content
Proven Results: 5 Ways Teladoc Health Chronic Condition Management Transforms HR Outcomes

Courtesy of TELADOC HEALTH

Further Reading

  • Employment Law
Did Toxic Workplace Lead to Birth Defects? Suit Gets New Life

An employer may be responsible for birth defects allegedly caused by its workers’ exposure to toxic chemicals, a state appeals court in I...

  • Employment Law
Fired by text – what a $400K termination mistake looks like

As an HR pro, you’ve probably accepted that letting employees go is tough – but it’s part of the job. And you’ve likely figured out...

  • Employment Law
New Lawsuit: Tobacco Surcharge on Health Insurance Flouts ERISA

With open enrollment season underway, you’re probably looking for ways to offer a competitive benefits package – without blowing the bu...

  • Employment Law
Groundbreaking AI discrimination settlement: 3 key lessons for HR

The EEOC and iTutorGroup, Inc. have reached an agreement to resolve the first AI discrimination lawsuit. The EEOC’s complaint alleged ...

  • Employment Law
‘Just suck it up’: How NOT to respond to a bias allegation

The EEOC claims in a newly filed lawsuit that an Idaho employer responded to a bias allegation by telling the reporting employee to “be t...

  • Employment Law
3 Things Managers Can’t Say to Employees Who Request FMLA

As an HR professional, you know that when employees request FMLA leave, those conversations need to be handled carefully. You have to stick...

Get the latest from HRMorning in your inbox PLUS immediately access 10 FREE HR guides.

I WANT MY FREE GUIDES
HR Morning Logo
  • Facebook
  • Linked In
  • ABOUT HRMORNING
  • ADVERTISE WITH US
  • WRITE FOR US
  • CONTACT
  • Employment Law
  • Benefits
  • Recruiting
  • Talent Management
  • Performance Management
  • HR Technology
  • Leadership & Strategy
  • Compensation
  • Policy & Procedures
  • Wellness
  • Staff Departure
  • HR Career & Self-Care
  • Health Care
  • Retirement Plans
  • DEI

HRMorning, part of the Rover Insights Network, provides the latest HR and employment law news for HR professionals in the trenches of small-to-medium-sized businesses. Rather than simply regurgitating the day's headlines, HRMorning delivers actionable insights, helping HR execs understand what HR trends mean to their business.

Powered By Rover Insights
Privacy Policy | Terms of Service
Copyright© 2026 Rover Insights
HRMorning Logo

WELCOME BACK!

Enter your username and password below to log in

Forget Your Username or Password?

Reset Password

Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.

Log In

Why do we need your credit card for a free trial?

We ask for your credit card to allow your subscription to continue should you decide to keep your membership beyond the free trial period.  This prevents any interruption of content access.

Your card will not be charged at any point during your 21 day free trial
and you may cancel at any time during your free trial.

During your free trial, you can cancel at any time with a single click on your “Account” page.  It’s that easy.