Fed Court Enjoins DEI Restrictions From Taking Effect

On February 21, 2025, a federal court in Baltimore issued a preliminary injunction preventing key provisions of Executive Order 14119, Ending Illegal Discrimination and Restoring Merit-Based Opportunity, from going into effect. The court found that several provisions of the EO—specifically, the Termination, Certification, and Enforcement Threat Provisions—were unconstitutionally vague and imposed content—and viewpoint-based restrictions in violation of the First and Fifth Amendments.

Key Takeaways from the Ruling

• The court determined that the EO’s prohibitions on “promoting” certain DEI-related concepts were overly broad and could chill speech by penalizing contractors and grantees for engaging in discussions on topics such as “unconscious bias,” “cultural sensitivity,” or “inclusive leadership.”
• Given the national scope of the federal contracting system, the court extended its ruling beyond the plaintiffs, recognizing that the provisions at issue are unconstitutional on their face and not just in specific applications.
• The court did not enjoin the Attorney General’s investigative and reporting authority under the EO but limited the ability to enforce the contested provisions.
• The government requested a bond under Rule 65(c) to cover potential financial impacts of the injunction, but the court waived it, emphasizing the fundamental constitutional rights at stake.

What This Means for Government Contractors

With the injunction in place, the majority of the DEI mandates contained in Executive Order 14119 are on hold, even as litigation continues. While the ultimate legality of the EO remains unresolved, government contractors should take proactive steps to mitigate risk and ensure compliance while protecting their existing DEI-related initiatives.

Practical Steps Contractors Can Take Now:

1. Review Existing Policies and Training Materials:
   1. Assess DEI-related training, policies, and communications for any language that could be interpreted as promoting "prohibited concepts" under the EO.
   2. Consider revising or tailoring materials to focus on compliance, workforce development, and leadership best practices while minimizing risk.
2. Monitor Government Enforcement Trends:
   1. While certain enforcement provisions have been enjoined, federal agencies may still conduct investigations and issue compliance guidance under the EO.
   2. Track agency-specific implementation and ensure that any interactions with contracting officers align with the latest guidance.
3. Evaluate Contractual Obligations:
   1. Identify existing and upcoming government contracts that require compliance with new EO provisions.
   2. Assess whether certifications or attestations related to DEI policies are required and consult legal counsel on potential risks.
4. Engage in Internal and External Communication Planning:
   1. Develop a clear strategy for responding to employee and external stakeholder concerns about DEI programs under the evolving legal landscape.
   2. Ensure that internal communications reinforce corporate values while staying within the parameters of the EO’s requirements.
5. Continue Monitoring Legal Developments:
   1. This preliminary injunction is only one step in ongoing litigation—further judicial rulings, regulatory guidance, or even legislative action could change the compliance landscape in the coming months.
   2. Consider joining industry coalitions or seeking legal guidance to stay informed on potential risks and opportunities as the courts determine the long-term enforceability of the EO.

Looking Ahead

The legal battle over Executive Order 14119 is far from over. While the court’s ruling prevents the majority of the EO’s provisions from moving forward, further litigation, appeals, or additional executive actions could reshape the regulatory landscape for government contractors. As developments unfold, contractors should take a measured approach that balances compliance with the EO while maintaining workplace policies that align with legal and business imperatives. Our team is closely tracking these legal proceedings and their implications for federal contractors. We will continue to provide updates as new developments emerge.

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_{This article is prepared for the general information of interested persons. It is not, and does not attempt to be, comprehensive in nature. Due to the general nature of its content, it should not be regarded as legal advice.}

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