Review internal policies, files as DEI, immigration policy landscape evolves, lawyer says

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There are a handful of practical steps businesses can take as they navigate the potential impacts of executive orders and policies established by President Donald Trump’s administration since he took office in January. In a recent webinar, Danielle Smid, an attorney at BrownWinick Law, talked about how the executive orders issued in 2025 could change the way businesses run their companies and workplaces.

Smid addressed how employers can manage the changes set in motion regarding diversity, equity and inclusion programs, immigration policies and labor regulations. Transparency, inclusivity and compliance are important when managing through the new rules, she said.

Smid’s recommendations include:

  • Audit existing DEI programs and policies to ensure compliance.
  • Review and update I-9 documentation and E-Verify processes.
  • Name a point person for handling and following protocol during potential ICE raids.
  • Stay updated on changes to Equal Employment Opportunity Commission and National Labor Relations Board policies.

Smid reminded attendees that new rules and policies could change at a moment’s notice.

“I feel like we’re kind of in COVID 2.0, where everything is changing daily with the employment laws, agencies and everything that’s been going on,” she said. “I wanted to talk a little bit about those changes today and kind of run through what we’ve been seeing so far, but also with the disclaimer that what I tell you today could change tomorrow.”

DEI programs

Smid said changes to federal-level DEI policies do not change the law.

“The main thing to remember at this point is that all of his executive orders or changes that he’s trying to implement do not really change what existing law looks like, and specifically existing law regarding discrimination, contracting employment or otherwise,” she said. “We still have Title VII. We still have the state civil rights laws. We still have the Age Discrimination in Employment Act, the Disability Discrimination [Act]; all of that is still in place.”

The executive order titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” is one of the main efforts to address DEI by the Trump administration, Smid said.

“Some of the things that order does is it rescinds several of the executive orders which prohibited discrimination by federal contractors and mandated federal contractors to take affirmative action in the hiring practices,” she said. “It really, at least attempts, to do away with those affirmative action plans that we know federal contractors had to abide by.”

The order also mandates that the Office of Federal Contract Compliance Programs stop requiring federal contractors to take affirmative actions and stop promoting diversity and allowing or encouraging federal contractors and subcontractors to engage in workforce balancing based on protected classes. Federal contractors must also certify that they do not operate any other programs promoting DEI that violate any applicable federal anti-discrimination laws.

A federal judge has put a preliminary injunction on the order and some sources expect an appeal from the Trump administration.

“This one is a little bit on hold, there has been an injunction filed in regard to that requirement, so we’re going to have to sit and wait and see how that plays out for federal contractors as to whether they have to make that certification or not,” Smid said. “Although the executive order mostly applies to the federal government and federal contractors, it absolutely encourages private sector companies … to end or limit certain DEI programs and has directed the attorney general to create a report on private sector DEI programs,” Smid said.

It’s also important to clarify what the order does not do, she added.

“It does not compel private employers to absolutely rescind their DEI programs and policies down to zero,” she said. “It does not say you have to do that. I highly recommend that you do not do that. What we want to do is figure out how we can still have our DEI programs, which are very, very important to a lot of our employees, how we can have those and still be compliant with the law.”

Smid said one challenge is that the order doesn’t provide a clear definition of DEI or what the administration considers unlawful DEI programs. She said employers should be mindful of DEI quotas or goals in their businesses, whether it’s for employees or vendors.

She said she expects the U.S. Department of Justice to conduct impromptu investigations of employers that have well-known DEI programs.

The department on Feb. 5 issued a memo saying it will consider bringing criminal and civil investigations into companies with DEI practices. On March 17, several major law firms were sent notices by the Equal Employment Opportunity Commission that their companies are under investigation for discrimination in their DEI practices.

“We want to really think about and vet with our managers, our supervisors, our C-suite people as to what risks are we willing, as an organization, to tolerate from a DEI program,” she said. “I think doing away with your DEI program entirely could damage your company or your business as much as if you had an investigation come in.”

Smid recommended that employers and managers focus on inclusivity in their DEI practices.

“We want to really focus more on inclusivity, making sure that our employees feel like they’re included, like they have a voice, regardless of where they are from or what they look like, or what religion they are,” she said. “We want to make sure that they have a voice, that they’re comfortable coming to work, that they feel safe coming to work and that they’re treated fairly, just like everyone else.”

Any internal professional development groups, mentorship or leadership programs, and employee resource groups should be open to anyone and not be based on protected classes.

“Now, that being said, we absolutely should not take out our EEO policies or our anti-discrimination policies or anti-harassment policies; those have to stay in,” she said. “Those are a part of our workforce and how we operate at our culture, and they’re also a part of how we defend against any sort of discrimination, lawsuit or litigation or complaints. So those stay in; those are still a part of our law and a part of our culture.”

She also said changing the name of employee resource and similar groups may not shield companies from scrutiny.

“I’ve talked to a lot of employers who have said to me, ‘Can’t we just change the name [of the resource group]?’ Yeah, you can, absolutely, but I don’t know that it’s going to keep you out of harm’s way from investigations,” she said.

Smid also suggested reviewing titles within companies that are DEI-related and ensuring they align with the executive order.

For employees who are active in DEI programs, employers should be transparent about what changes are being made and why, she said.

A webinar attendee asked if the new rules meant companies should no longer make philanthropic contributions to organizations serving marginalized communities.

“I wouldn’t recommend that you roll it back,” Smid said. “I think it’s still perfectly fine to participate in those organizations or those events, things like that. I just would not make it mandatory. I would make sure it’s optional and that employees are doing it based on their own interests.”

Immigration

Trump’s executive orders tied to immigration policies range from increased border security to a mass deportation operation.

The two ways U.S. Immigration and Customs Enforcement, or ICE, can enter a workplace is through an audit or a raid, Smid said.

For an audit, it’s a good idea for employers to review their I-9 employment forms, she said. Companies should have completed I-9 forms for all active employees, and any errors to the forms should be corrected. The E-Verify process should also be reviewed for missing information, and posters need to be in the correct places at all worksites.

“You want to conduct a review of your employee personnel records: I-9 records, immigration files, and make sure that those files are kept in separate file [folders] and contain only relevant documents,” Smid said. “For example, we want to remove or relocate documents that may disclose employees’ personal, protected data that are otherwise required to be maintained in the I-9 files.”

Employers should also review contracts with contractors, leased workers and temporary workers to ensure they hold the legal responsibility for completion of I-9 forms, and that all necessary documentation is on-site if required, she said.

Smid said the objective of ICE raids is to detain undocumented employees. They are not announced in advance but require a judicial search warrant or permission from the employer to enter the nonpublic areas of the business.

The warrant has to come from a court, not a federal agency like the Department of Homeland Security, she said.

To prepare for a potential raid, companies can designate one person, usually from the human resources department, to act as the point person.

“You want to establish basic protocols for that designated company representative to follow in the event that ICE does show up, like what things does that person need to ask about specifically? Take a look at that warrant that they hand you if they hand you one, because without one, they’re not allowed to come into the nonpublic areas of your business,” she said.

The designated person should understand what questions to ask ICE agents and what records the agency can access.

“Ensure that the designated person understands the employer’s records and retention policy and what to expect during an ICE raid and how to respond,” Smid said. “That individual needs to understand such things as they do not have to point out specific employees.”

Employers can also put together guidelines and instructions for the person who works at the front desk, or the first person who might interact with an ICE agent as they enter the building.

She said ICE is more likely to target specific industries that might have a higher percentage of undocumented workers, such as restaurants and the hospitality, construction, cleaning and agriculture industries.

Webinar attendees asked many questions, from what to do if a company vehicle is pulled over by ICE to whether it’s OK to include preferred pronouns in email signatures. Employees who are pulled over by ICE should not answer any questions, and listing preferred pronouns is acceptable, Smid said.

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Gigi Wood

Gigi Wood is a senior staff writer at Business Record. She covers economic development, government policy and law, agriculture, energy, and manufacturing.

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