What Law Firms Should Know About DEI Risk Mitigation Strategies for 2025

January 8, 2025

What Law Firms Should Know About DEI Risk Mitigation Strategies for 2025

What Law Firms Should Know About DEI Risk Mitigation Strategies for 2025

According to an article by the Jenner & Block firm, corporate DEI efforts face significant challenges under President Trump’s administration. With Republicans assuming control, the government is expected to deploy multiple strategies to undermine DEI programs. Law firms and their corporate clients should respond by shifting their DEI risk mitigation strategies.

The article highlights key developments, including the appointment of Stephen Miller and Harmeet Dhillon, both known for opposing DEI initiatives. The revival and potential expansion of Executive Order 13950 could impose new restrictions on federal funding recipients. Additionally, the Department of Labor’s Office of Federal Contract Compliance Programs may intensify compliance evaluations targeting corporate DEI programs, potentially scaling back affirmative action obligations for federal contractors.

Under new leadership, the Department of Justice will likely adopt anti-DEI amicus positions, paralleling previous support for cases challenging race-conscious policies. Moreover, a unified GOP Congress may pursue anti-DEI investigations and legislation, further compounding the pressure on corporate DEI initiatives.

Activists and litigants, buoyed by federal opposition, are expected to escalate anti-DEI efforts. Social media campaigns, shareholder pressures, and reverse discrimination claims are poised to rise, with notable cases like Ames v. Ohio Department of Youth Services set to influence legal standards. Anti-DEI litigation could also become more aggressive, with strategies to prevent case dismissals even after program terminations.

Here are a few DEI risk mitigation strategies for 2025:

  • Review and Update DEI Policies: Ensure DEI programs comply with current legal standards and adapt to anticipated regulatory changes.
  • Legal Risk Assessment: Thoroughly assess potential legal risks, particularly those related to reverse discrimination and compliance with federal contractor obligations.
  • Stakeholder Communication: Develop clear communication strategies to address concerns from shareholders and the public, emphasizing the value and compliance of DEI initiatives.
  • Litigation Preparedness: Strengthen legal defenses and prepare for potential litigation by reviewing past cases and emerging legal trends.
  • Engage Expert Counsel: Work with legal experts to craft strategies that align DEI goals with evolving legal requirements, ensure compliance, and continue diversity initiatives.

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