How employers can prepare for Trump administration changes to workplace DEI rules

For most of this year, the federal agency that enforces US workplace anti-discrimination laws has been operating without a quorum. 

That just changed, and a reversal of DEI policy is expected once operations resume following the government shutdown. 

The Senate confirmed this month Florida prosecutor Brittany Panuccio by a slim margin to become the third commissioner of the five-seat Equal Employment Opportunity Commission (EEOC). Panuccio makes a Republican majority and unlocks the commission’s ability to vote on policy, guidance and litigation posture.

Created in 1965 amid the Civil Rights era, the EEOC investigates workplace discrimination complaints and issues guidance to balance employee-employer relations. Though a lesser-known federal agency, its remit is widespread — responsible for enforcing policies protecting workers with disabilities, age, race and gender, typically for firms with at least 15 employees and sometimes wider still.

After high-profile, pandemic-era corporate diversity commitments, the conservative backlash has been severe. Led by successive court cases, the Trump administration has promised to follow suit in the regulatory state. 

Today, the EEOC is a battleground. 

How the EEOC got here

If your company had biased hiring practices or didn’t accommodate certain protected groups at work, complaints go to the EEOC, which would investigate and enforce any penalties. The EEOC itself can sue employers, as it did with Sam’s Club over disability discrimination. 

The new administration wants to change that: Narrowing its responsibilities, and broadening the interpretation of protected groups. 

Employment law analysts at law firm Morgan Lewis expect the new EEOC to move quickly on guidance-level changes and shift regulation to align with the administration’s stated agenda to target “unlawful DEI-motivated race and sex discrimination,” refocus sex-based policies, and revisit strategic plans adopted under the Biden administration.

This comes after a volatile year: the administration removed two Democratic commissioners in January, froze portions of DEI-related activity across agencies, and the EEOC issued new technical assistance framing when DEI initiatives cross into Title VII discrimination.

The near-term actions the EEOC can take include rescinding or modifying harassment guidance, especially sections interpreting protections for transgender workers. These can move via commission vote without full rulemaking, per Morgan Lewis. 

Of those rulemaking changes that require more time, including a notice and comment period, the EEOC could rework regulations from last year’s Pregnant Workers Fairness Act, targeting portions on reproductive-health coverage.

Shifts under Trump’s EEOC

Amid other combative changes to the administrative state, changes have already happened under Trump’s EEOC chair, Andrea Lucas. Those include

• DEI guidance and FAQs: The EEOC published guidance arguing that protections “apply equally to all workers,” and that using race/sex as any motivating factor can be unlawful — even inside DEI programs. It also outlines when DEI trainings could contribute to a hostile environment.
• Form and data practices: The agency removed the voluntary option to report nonbinary workers on EEO-1 filings, citing executive orders requiring binary sex reporting, an early compliance signal to HR teams
• Operating during the no-quorum period: The EEOC emphasized it stayed “open for business,” taking complaints, issuing subpoenas and operating existing lawsuits under delegated authority, but could not vote on new rules or rescind guidance until this month.

The current federal government shutdown, already the second longest in American history, has slowed the changes predicted to come, as the EEOC itself is effectively closed. 

What are the effects to come once the EEOC is operational, with a quorum?

Some changes are well within the right of a new presidential administration. Reasonable people could agree on the needs of protected groups but disagree on whether it’s the federal government’s responsibility to act. 

Proponents of these changes often remind that employers can still choose to maintain worker protections provided they fit within new guidelines. The administration argues it’s restoring “even-handed” enforcement and sex-based protections.

Still, civil rights advocates warn the new majority may unwind longstanding interpretations of LGBTQ+ protections and data transparency. 

Fired Democratic commissioner Jocelyn Samuels — appointed by Trump in 2020 — has sued over her removal and warns of a chilling effect on employer inclusion efforts. Large employers may reverse course to fit with Trump’s priorities, an example of so-called “anticipatory compliance” that has happened elsewhere this year.

What employers should do now

Regardless of your stance, change is coming. In the meantime, tightening up policies can reflect an organization’s priorities.

Here are five things you can do today to get ready.

• Audit DEI practices for Title VII exposure. Avoid any policy where protected traits are inputs to employment decisions (such as hiring slates, mentorship eligibility, compensation and access to training). The EEOC’s Q&A is a practical checklist.
• Refresh harassment training and facilities policies. Expect scrutiny of gender-identity elements in harassment guidance and single-sex facilities policies. Document neutral, safety-driven rationales and consistent application.
• Tighten pregnancy-leave processes. Keep current accommodations flowing; track any forthcoming rulemaking, but don’t pre-emptively narrow coverage.
• Prepare for more amicus activity. High-profile cases on DEI, transgender rights and religion may see new EEOC briefs.
• Mind your reporting. For 2024 EEO-1s (filed in 2025), nonbinary gender reporting via comments has been removed. Ensure systems map to binary sex fields and document respectful internal processes to avoid misgendering employees.

The government shutdown has given another pause in what insiders expect will bring rapid change. Now is the time for employers to adjust.