Trump Administration’s New Position On Disparate Impact Liability Doesn’t Affect Private Litigation  

April 29, 2025

 

What's New

On April 23, President Trump signed Executive Order 14281, Restoring Equality of Opportunity and Meritocracy, which seeks to eliminate the use of disparate-impact liability under civil rights laws.  

Disparate impact is a theory that can lead to liability under many civil rights laws when a neutral policy or practice adversely affects members of a protected class.    

The E.O. directs the Equal Employment Opportunity Commission to deprioritize enforcement of disparate impact under Title VII of the Civil Rights Act of 1964. The E.O. does not affect Title VII investigations or litigation that does not involve the EEOC.  

The order also directs federal agencies to identify for rescission any regulations or guidance that impose disparate impact liability and any pending investigations or cases where disparate impact is at issue.

What It Means

We expect the EEOC to respond by dropping any existing disparate impact investigations and pending litigation while continuing to process disparate treatment (i.e., intentional discrimination) claims. However, the E.O. does not amend any civil rights laws and will not affect the ability of private litigants to bring disparate impact claims under Title VII. The E.O. will have a greater impact on entities that receive federal financial assistance governed by Title VI. 

The risk of systemic discrimination claims from applicants and employees is still very much present, and employers should continue to monitor their processes to assess and mitigate risk. 

What You Should Do

CWC members may register for our Members-only Roundtable, scheduled for May 7 at 3:00 EDT, to discuss the new E.O.





RELATED CONTENT


Subscribe to CWC's Updates and Events

CLICK TO SIGN UP




See more

Resources

Our library of sources helping you understand and manage your workplace requirements and risks.

Data Center

Metrics and dashboards guiding you to make statistics and research-driven decisions.

Events

Learn and network at events focused on compliance policy, practice, and strategy.

Diversance Connect

Helping members find and connect with thousands of outreach and recruitment sources.




© 2026 Center for Workplace Compliance (CWC), Washington, DC 20005. All rights reserved

Terms of Service      Privacy Policy      Cookie Policy      Antitrust Policy