President Trump signs EO aiming to eliminate disparate impact liability

On April 23, 2025, President Donald Trump signed Executive Order (EO) 14281, titled “Restoring Equality of Opportunity and Meritocracy,” which directed federal agencies to cease enforcement of civil rights laws that prohibit “disparate impact” discrimination. Consistent with this administration’s initiative to roll back diversity, equity, and inclusion (DEI) programs, this EO revokes presidential approvals of certain federal regulations that previously allowed federal agencies to enforce antidiscrimination provisions based on disparate impact.

What is disparate impact?

Disparate impact refers to employment practices that, while neutral on their face, disproportionately affect members of a protected class under civil rights laws. Unlike disparate treatment, which involves intentional discrimination, disparate impact focuses on the consequences of policies or practices, regardless of intent. This legal theory was established in the 1971 U.S. Supreme Court case Griggs v. Duke Power Co., which held that employment practices must be related to job performance and not disproportionately exclude certain groups unless justified by business necessity.