EEOC, DOJ implement Trump administration ban on disparate impact

On April 23, 2025, President Trump issued Executive Order (EO) 14281, Restoring Equality of Opportunity and Meritocracy, which seeks to “eliminate the use of disparate-impact liability in all contexts to the maximum degree possible.” Disparate impact legal theory is based on the proposition that seemingly neutral policies or practices may disproportionately and negatively affect a protected class. It focuses on outcomes resulting from policies as opposed to the intent behind them.

Deprioritize enforcement

The EO calls the theory “contrary to equal protection under the law” and describes it as creating a “near insurmountable presumption” of unlawful discrimination. It further claims that it requires employers to affirmatively consider race or other protected characteristics to avoid “crippling legal liability,” which is “wholly inconsistent with the Constitution.”

The EO goes on to direct all executive departments to deprioritize the enforcement of statutes and regulations that include disparate impact liability, including Title VII of the Civil Rights Act of 1964 and asks the attorney general (AG) to suggest amendments to statutes and regulations including state laws. The AG and the Equal Employment Opportunity Commission (EEOC) chair are tasked with assessing and taking appropriate action on pending investigations and civil suits involving disparate impact liability. They also must determine if federal authorities preempt state laws imposing disparate impact and take “necessary measures.”

EEOC halts investigations into disparate impact claims