Executive Order on HR Meritocracy: Implications for Business
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Navigating Washington: Insights for Business

Executive Order on HR Meritocracy: Implications for Business

/ Essay

Executive Order 14281, signed April 23, 2025, states that the administration’s policy and enforcement position is to eliminate the use of disparate (or adverse) impact to prove employment discrimination under Title VII of the Civil Rights Act of 1964. The order encourages a return to evaluating candidates on individual merit, skill, and qualifications rather than group-based statistical outcomes and directs all federal agencies, including the Equal Employment Opportunity Commission (EEOC) and the Department of Justice, to focus less on enforcing and litigating disparate impact claims. It also asks them to review and possibly change or repeal existing regulations, guidance, and consent decrees that impose disparate impact liability on businesses.

Executive Order 14281, signed April 23, 2025, states that the administration’s policy and enforcement position is to eliminate the use of disparate (or adverse) impact to prove employment discrimination under Title VII of the Civil Rights Act of 1964. The order encourages a return to evaluating candidates on individual merit, skill, and qualifications rather than group-based statistical outcomes and directs all federal agencies, including the Equal Employment Opportunity Commission (EEOC) and the Department of Justice, to focus less on enforcing and litigating disparate impact claims. It also asks them to review and possibly change or repeal existing regulations, guidance, and consent decrees that impose disparate impact liability on businesses.

Authors

Camille A. Olson

Camille A. Olson Camille A. Olson

Partner
Seyfarth Shaw LLP

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Allan Schweyer

Allan Schweyer Allan Schweyer

Principal Researcher, Human Capital
The Conference Board

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