In Chicago Women in Trades v. Trump et al., No. 1:25-cv-02005, U.S. District Judge Matthew F. Kennelly of the U.S. District Court for the Northern District of Illinois issued a temporary restraining order (TRO) preventing the Department of Labor (DOL) from enforcing two provisions of Executive Orders (EOs) 14151 and 14173: one that mandates termination of grants/contracts with organizations promoting DEI, and another that requires recipients to certify under the False Claims Act that they do not have DEI/DEIA programs. The judge found these provisions likely violate the First Amendment and cause harm to the plaintiff, Chicago Women in Trades (CWIT), a nonprofit that supports women in trades.

Judge Kennelly ruled that the provisions are vague, coercive, and could suppress constitutionally protected speech. The TRO on the termination provision applies only to CWIT, but the certification provision is blocked nationwide—though limited to actions by the DOL.

This decision follows a recent appellate court ruling that stayed a broader injunction in a related case. Additional lawsuits are also challenging these executive orders, including one in D.C. that targets EO 14168, which defines sex as binary in federal policy.

The TRO may lead to a broader injunction in the CWIT case, and is likely to be appealed expeditiously by the current administration. Ongoing legal uncertainty over the legality of DEI-related policies could ultimately be resolved by the U.S. Supreme Court, with significant consequences for employers and DEI programs nationwide.

Employers and federal contractors should consult with outside counsel to ensure appropriate risk assessment and tracking legal developments. Employers should remember, the substantive law—Title VII—has not changed, but employers should carefully review the DEI policies, employee resource groups, and other “terms and conditions of employment” (like mentorship programs, etc.) to ensure compliance with federal and local law.