It has proven to be an eventful first month of the new administration with multiple executive orders, memoranda issued, and lawsuits filed in response. Things are moving quickly and should be continually monitored for developments occurring on a weekly (if not daily) basis. This article provides a brief – and far from exhaustive – overview of the employment-related actions and reactions.
Diversity, Equity and Inclusion
On January 21, 2025, the president issued Executive Order 14173 aiming to eliminate all DEI and DEIA policies and programs within the federal government and private sector. On February 5, 2025, Attorney General Pam Bondi issue a memorandum directing the DOJ to initiate broad investigations of private company for civil rights violations related to diversity, equity, and inclusion.
Multiple lawsuits have been filed against the executive order. Plaintiffs, including the National Association of Diversity Officers in Higher Education among many others, filed suit in the United States District Court for the District of Maryland [Case No. 1:25-cv-00333] seeking to enjoin and declare the executive orders unconstitutional. On February 21 the presiding judge issued an opinion granting parts of the preliminary injunction.
In addition, attorneys general from 16 states issued an open letter titled “Multi-State Guidance Concerning Diversity, Equity, Inclusion, and Accessibility Employment Initiatives” in response to Executive Order 14173.
At-Will Employment for Federal Employees
On January 20, 2025, the president issued Executive Order 14171 to reclassify many federal employees as at-will employees. This would make it easier to terminate their employment as they would no longer be in the “competitive service” category with the benefit of job protections and instead would be in the “schedule policy/career” category. Federal employees have previously not been considered at-will employees with due process protections under the Civil Service Reform Act of 1978.
Multiple lawsuits have been filed by federal labor unions challenging Executive Order 14171. The National Treasury Employees Union, Government Accountability Project, and AFF-CIO each filed separate lawsuits in the D.C. federal court [case number 1:25-cv-00170], and the Public Employees for Environmental Responsibility filed a separate action [case no. 8:25-cv-00260] in federal court in Maryland.
Ending Remote Work for Federal Employees
The president issued his “Return to In-Person Work” executive order to end remote work for federal employees. Specifically, agencies were informed to have remote workers back in the office within 30 days, which looks to be the last day of February. Unless those employees are able to procure a waiver or special authorization to continue to work remotely, or accept the buyout offered by the administration (see immediately below), their employment will be terminated.
On January 28, 2025, federal employees were informed of a “Fork in the Road” offering employees the “deferred resignation” program of compensation until September 30, 2025, if they resign now, with an initial deadline of February 6, 2025. A lawsuit was filed by the American Federation of Government Employees in early February in federal court in Massachusetts seeking to enjoin the directive, but the presiding judge recently denied preliminary injunctive relief based on lack of standing and lack of subject matter jurisdiction.
Federal Government Recognizes Only Two Genders
On January 20, 2025, the president issued Executive Order 14168 stating that the federal government will only recognize two genders – male and female – removing the transgender and nonbinary categories. The order rescinded previous guidance from the EEOC under the previous administration that LGBTQ employees are legally protected under Title VII of the Civil Rights Act.
The president followed that up by issuing the “Keeping Men Out of Women’s Sports” Executive Order 14201 on February 5, 2025, directing the federal government to interpret and enforce Title IX under the gender definitions provided in Executive Order 14168 and applying it to women and girls’ sports. A lawsuit in New Hampshire federal court [case no. 1:24-cv-00251] that was originally filed in August 2024 is now seeking to amend and add claims related to the executive orders.
Nullifying Recent Collective Bargaining Agreements
On January 31, 2025, the president issued a memorandum entitled “Limited Lame-Duck Collective Bargaining Agreements That Improperly Attempt To Constrain the New President” nullifying collective bargaining agreements (CBAs) with federal agencies that were finalized during the last month of the previous administration. CBAs that might have negotiated telework for their employees are now called into question and likely will not be followed by federal agencies.
Federal unions have contended that such action violates binding CBA contracts.
IGs Fired
On January 24, 2025, the administration sent emails to several inspectors general (IGs) of federal departments and agencies informing them that their employment had been terminated and then they promptly lost access to their government email accounts and facilities.
On February 12, 2025, eight of the IGs filed a lawsuit in federal court in D.C. [case no. 1:25-cv-00415] alleging that the action violated the Inspector General Act, requiring Congressional notification and seeking a declaratory judgment that the terminations were legally ineffective and that they remained IGs.
NLRB Memos Rescinded
On February 14, 2025, acting National Labor Relations Board General Counsel William Cowen issued GC 25-05, which rescinded a series of memos issued by previous General Counsel Jennifer Abruzzo that set a new course for the agency during the Trump administration. The memo commented that the backlog of cases has grown “to the point where it is no longer sustainable. The unfortunate truth is that if we attempt to accomplish everything, we risk accomplishing nothing.” The GC 25-05 memo rescinded a total of 31 previous memos, either permanently or pending further guidance, related to remedies sought, the rights of student athletes under the NLRA, severance agreements, and non-compete agreements, among others.
Additionally, the president recently terminated the employment of NLRB member Gwynne Wilcox, a Democrat. Wilcox, whose term was supposed to run through 2028, filed a lawsuit [case no. 1:25-cv-00334] in federal court in D.C. against the president and NLRB Chairman Marvin Kaplan. Only days after filing the lawsuit, Wilcox filed a motion for expedited summary judgment. The matter remains pending. By firing Wilcox, the NLRB is now left without enough members to issue rulings until more members are appointed.
Stay Tuned
Much has taken place under the new administration, and the items mentioned (along with other orders and actions that may be forthcoming) should be monitored for continued developments. There is undoubtedly much more to come.