Thursday 27 March 2025
This blog provides an overview of recent developments regarding Diversity & Inclusion (D&I) in the United States under the Trump administration and their impact. It also examines the current position on D&I in both the U.S. and the UK.
Earlier this year, President Donald Trump issued several executive orders that have led to changes in D&I policies in the U.S., affecting both public and private sectors. Executive Order 14151 (signed on January 20, 2025) eliminates all diversity, equity, inclusion, and accessibility (DEIA) programs in the federal government. Executive Order 14173 (signed on January 21, 2025) similarly removes D&I programs across federal agencies and seeks to discourage their use in the private sector. The justification provided for these orders is that D&I programs may violate civil rights laws and undermine merit-based opportunities.
Following the issuance of these orders, the U.S. Equal Employment Opportunity Commission (EEOC), a government agency responsible for ensuring fair treatment in the workplace, requested information from 20 leading law firms about their equality practices. The impact of these orders has included consequences for some firms. One law firm was restricted from obtaining government contracts, citing its D&I practices as the reason, while another firm had its government contracts terminated and security clearances for its employees suspended.
Reactions to these executive orders have been mixed. One law firm filed a lawsuit challenging the orders and asking a judge to declare them unlawful. Another firm, however, has committed to providing pro bono legal work for administration-supported causes such as combating antisemitism and supporting veterans. Additionally, more than 300 Biglaw associates signed an open letter calling on law firm leaders to take a stand against these orders.
In contrast, the UK’s new Labour government has announced plans to introduce more ambitious anti-discrimination measures. These proposals include expanded pay gap reporting, requiring employers with 250 or more employees to report on ethnicity and disability pay gaps, and equal pay rights, extending these protections to cover race and disability. Although these measures are not part of the Employment Rights Bill, they are expected to be included in a forthcoming bill titled The Equality (Race and Disability) Bill, which is anticipated to be published in draft form soon. These changes are expected to have a notable impact on UK workplaces, increasing the focus on D&I initiatives.
UK employers are also likely to be indirectly affected by European Union regulations such as the EU Pay Transparency Directive and the Corporate Sustainability Reporting Directive, which emphasise greater transparency and accountability in workplace practices.
Despite the changes in the U.S., many law firms in the UK appear to be continuing their D&I commitments. One firm has set a goal for 20% of its partnership to come from lower socio-economic backgrounds within the next four years. Another firm has appointed a former CEO of a major UK clearing bank as a diversity and inclusion adviser. This individual will work closely with the firm’s equity, diversity, and inclusion committee and mentor partners, bringing valuable experience to advance the firm’s D&I objectives.
As the U.S. and UK take different approaches to D&I policies, these developments are likely to shape the future landscape of diversity, equity, and inclusion in both regions.