The U.S. Fourth Circuit Court of Appeals has upheld President Trump’s executive orders aiming to eliminate employers’ diversity, equity, and inclusion (DEI) programs to the extent they discriminate based on protected status. Our previous reports on this topic here, here, and here, have followed the process as it moved through the courts. In practice, this most recent decision just means the executive orders remain in effect (National Association of Diversity Officers in Higher Education v. Trump, 4th Cir, Feb. 2026).
Tips: For private employers, this order has no new practical impact. For over a year, the risk of DEI practices receiving scrutiny has been and remains the same. The label “DEI” has become a political hot button, but such programs are prohibited in private employment only to the extent that they violate existing federal laws against discrimination, including Title VII of the Civil Rights Act. An example of an illegal DEI policy is one that gives a preference in hiring or promotion based on race, which would clearly violate Title VII under longstanding legal principles. In contrast, an example of a compliant DEI policy would be one stating that when problem-solving at work, the company expects employees to share their ideas, listen to coworkers’ different views, and treat each other with respect, even if they disagree.
Under the relevant executive order, federal contractors may still be required to certify that they do not maintain illegally discriminatory DEI or DEI-like programs to receive or maintain federal contracts. The U.S. Department of Justice (DOJ) said last year it will pursue claims against federal contractors found in violation of the executive order under the False Claims Act, which gives the federal government broad authority to investigate and fine alleged violators. The DOJ has also issued guidance to help employers determine whether their programs comply with the law.
All private employers remain subject to both federal and state anti-discrimination laws. The EEOC has offered guidance for employers on how to navigate compliance with federal directives, but continue to follow state-level guidance, too. If a conflict between federal and state law comes up or you have questions, contact your Vigilant Law Group employment attorney.
This article has been revised to reflect the following correction:
Correction: March 23, 2026
This article has been revised to clarify that federal executive orders have not eliminated DEI programs for private employers, but rather have targeted DEI programs to the extent they violate existing laws against discrimination in employment.
