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The Employer Handbook Blog
Did President Trump just cancel disparate impact discrimination claims?
President Trump’s latest executive order could change how the federal government handles workplace discrimination — but not in the way you might think.
Before you assume that disparate impact claims are gone for good, let’s unpack what the order does (and doesn’t) do.
TL;DR: President Trump signed an executive order on April 23, 2025, aimed at eliminating the use of “disparate impact” analysis in federal civil rights enforcement, declaring it incompatible with the principles of equality of opportunity and merit-based decision-making. While the order binds federal agencies like the EEOC, it doesn’t change Title VII itself. That means individuals can still bring disparate impact claims in court — but expect the EEOC to largely step back from enforcing them.
The Executive Order: A Shift from Outcomes to Intent
President Trump’s new executive order — titled Restoring Equality of Opportunity and Meritocracy — directs federal agencies to stop using disparate impact theory in civil rights enforcement unless Congress has explicitly authorized it. The order frames disparate impact as a threat to individual merit and equal treatment under the law, arguing that policies should not be presumed discriminatory just because they produce unequal outcomes.
That’s a pretty significant statement, especially for agencies like the EEOC, which have historically used disparate impact analysis as one of two key ways to establish discrimination under Title VII.
What Title VII actually says about disparate impact
The Civil Rights Act of 1964 — specifically Title VII — prohibits employment practices that discriminate because of race, color, religion, sex, or national origin. But the statute doesn’t stop at intentional discrimination.
Thanks to a 1991 amendment (and the 1971 Supreme Court decision in Griggs v. Duke Power Co.), Title VII also prohibits facially neutral practices that disproportionately impact members of a protected group — unless the employer can show the practice is job-related and consistent with business necessity.
So disparate impact isn’t some rogue theory. It’s baked into the statute.
What happens now?
To be clear, the executive order doesn’t repeal Title VII or its disparate impact provisions. But it does limit how federal agencies can act. Here’s what that likely means for employers and HR professionals:
- The EEOC will still accept disparate impact charges. Individuals can still file them. The agency has no legal basis to turn them away.
- But don’t expect much investigation. The EEOC may acknowledge receipt but quietly decline to pursue impact-based claims, citing the executive order.
- No new disparate impact lawsuits from the EEOC. The order likely means the EEOC will stop initiating litigation based solely (or even partly) on disparate impact theories.
- Pending impact-based litigation may disappear. Expect the EEOC to withdraw from cases where its involvement is premised on disparate impact — potentially leaving plaintiffs to carry the torch alone.
- Private and state litigation will continue. Individuals can still bring disparate impact claims in court, and state agencies may continue investigating them under state law.
The bottom line for employers:
- Know your stats. Disparate impact hasn’t gone away — just the federal enforcement muscle behind it.
- Update your risk radar. If a hiring or promotion practice has a statistically significant adverse effect on a protected group, review it now — especially if you’re in a state that enforces its own version of disparate impact law.
- Stay tuned. The EEOC may issue guidance clarifying how it plans to implement the order. Court challenges may also follow.
Federal agencies may be stepping back from disparate impact, but the law hasn’t changed — and neither has your responsibility to keep employment practices fair, defensible, and data-informed.