President Trump Targets Disparate Impact Claims with New Executive Order

By: Alex Hains

In another significant policy shift, President Trump signed an executive order on April 23, 2025, that could have huge implications for employment discrimination claims. The Executive Order requires the Equal Employment Opportunity Commission (EEOC) and Justice Department to review and reassess their investigations and lawsuits that rely on disparate impact theories, as part of the Trump Administration’s effort “to eliminate the use of disparate impact liability in all contexts to the maximum degree possible.”

Understanding Disparate Impact Claims

Disparate impact claims allow workers to challenge neutral employment policies that disproportionately affect members of a protected class, even if there was no intent to discriminate. This doctrine was first recognized by the U.S. Supreme Court in Griggs v. Duke Power Co. (1971) and later codified into law by Congress through the Civil Rights Act of 1991.

Under existing law, an employer can face liability if a neutral practice – such as requiring a college degree for certain jobs – has a disproportionate impact on a particular group of individuals based on a protected characteristic. Importantly, plaintiffs need not prove discriminatory intent – only that the outcome of a policy results in an adverse impact on a protected group.

Despite this Executive Order, it is important to note that unless Congress acts or the Supreme Court overturns the doctrine, disparate impact remains a viable cause of action for private litigants.

Key Takeaways from the Executive Order

According to the White House’s Fact Sheet on the Executive Order, the Trump administration views disparate impact as incompatible with the Constitution’s promise of equal treatment, arguing that it promotes race-based decision making. The Fact Sheet states:

The Order revokes presidential actions that approved of disparate-impact liability and sets in motion broader reform.
It directs all agencies to deprioritize enforcement of statutes and regulations that include disparate-impact liability.
The Order instructs the Attorney General to repeal or amend all Title VI (racial nondiscrimination) regulations that contemplate disparate-impact liability.
It directs the administration to assess all pending investigations, lawsuits, and consent judgements that rely on a theory of disparate-impact liability, and take appropriate action.

Looking Ahead: The Impact on Employers

For at least the remainder of the Trump administration, the EEOC and other federal agencies will significantly scale back or suspend all enforcement actions related to disparate impact discrimination claims. Although individual employees will still retain the right to bring disparate impact claims under state and federal laws, such claims may be harder to prove in an environment where key supporting rules and regulations are expected to be amended, repealed, or left unenforced. However, the underlying statutes and relevant case law remain unchanged, meaning disparate impact claims have not been eliminated altogether.

Employers should remain alert for new guidance from the Office of the Attorney General and the EEOC that may further clarify changes in enforcement priorities. These agencies are anticipated to release additional directives outlining how they intend to interpret and apply anti-discrimination laws going forward under the new policy framework.

Employers should carefully monitor regulatory updates, assess their employment practices for compliance risks, and be prepared for an evolving legal landscape where federal disparate impact claims become less of a threat—but not one to ignore entirely, especially given ongoing state-level protections and private litigation risks.

Department of Labor Seeks to Pause its Litigation over Biden-Era Wage and Hour Overtime Rule: What Employers Need to Know

By: Philip Giorlando and Fred Preis

In a move signaling an expected shift in Federal wage-and-hour policy, the Trump administration has asked the U.S. Court of Appeals for the Fifth Circuit to pause appeals in two cases challenging the U.S. Department of Labor’s (DOL) 2024 overtime rule. The motion—filed unopposed by the Department of Justice (DOJ) on April 24, 2025—indicates that the new DOL leadership is reevaluating the rule, raising doubts about whether the administration will defend or revive the contested regulation.

Background: The 2024 Overtime Rule

The Biden-era DOL’s final rule, issued in April 2024, aimed to significantly increase the salary thresholds for the Fair Labor Standards Act’s (FLSA) white-collar exemptions. The rule would have:

Raised the minimum salary for the “white collar exemption” for executive, administrative, and professional employees to $1,128 per week (equivalent to $58,656 annually),
Increased the “highly compensated employee” (HCE) exemption threshold to $151,164 annually, and
Instituted automatic updates to those thresholds every three years.

However, the rule faced immediate legal challenges. In November 2024 and again in December 2024, federal courts in the Eastern District of Texas struck down the regulation, holding that it exceeded the DOL’s statutory authority. The Biden administration appealed both rulings to the Fifth Circuit.

Trump DOL Signals Shift

Despite earlier indications that the Trump administration might withdraw from the litigation, the Trump DOL initially filed appeals in February 2025. Now, however, the agency has requested a pause in those proceedings, stating it intends to “reconsider the rule” and arguing that holding the appeals in abeyance would preserve judicial resources.

Legal Context: The 2019 Rule Remains in Effect

With the 2024 rule currently invalidated, the DOL’s 2019 overtime rule remains the governing standard. That rule sets:

The white collar exemption threshold at $684 per week ($35,568 annually), and
The highly compensated employee exemption threshold at $107,432 annually.

Notably, the 2019 rule has withstood its own legal challenge. In September 2024, the Fifth Circuit upheld the rule, affirming the DOL’s authority to set salary thresholds under its congressionally delegated power to “define and delimit” FLSA exemptions. A petition for Supreme Court review is expected.

Implications for Employers

The Trump administration’s request to pause the appeals likely foreshadows a formal abandonment of the 2024 rule. However, employers should be cautious. The new DOL could enact its own separate regulation, incorporating parts of the Biden-era 2024 rule.

In the meantime, employers should:

Ensure continued compliance with the 2019 salary thresholds for EAP and HCE exemptions;
Monitor developments at both the federal and state levels, as some states impose higher exemption thresholds;
Prepare for potential regulatory changes from the Trump DOL, which may propose a new overtime rule reflecting different policy priorities.

Looking Ahead

The Trump administration’s motions suggest a rollback of Biden-era wage regulations may be underway. Whether a new rule will emerge—and how it will be structured—remains to be seen. For now, employers should remain vigilant and consult legal counsel as the landscape evolves.