Trump Administration Ends EEOC Use of Disparate Impact Liability, Affecting AI Bias Enforcement and DEI Initiatives

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Updated May 8, 2025, 12:05 AM

The Trump administration has issued an executive order directing federal agencies, including the Equal Employment Opportunity Commission (EEOC), to cease using the disparate impact liability theory in discrimination enforcement. This move is expected to alter the EEOC's enforcement mission by limiting its ability to pursue claims of unintentional bias, including those related to artificial intelligence in the workplace. Legal experts warn that this change could undermine civil rights protections for minorities and increase private litigation. The directive also aligns with broader efforts by the administration to dismantle diversity, equity, and inclusion (DEI) initiatives within the federal government. While some lawmakers express concern that important policy documents have been affected, businesses remain cautious but are not rushing to significantly change their DEI programs amid the administration's opposition. The shift may prompt states and private plaintiffs to take a more active role in regulating workplace AI bias and related discrimination issues.

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Sources

law360.com(2)news.bloomberglaw.com(2)natlawreview.com(2)myarklamiss.com

Law360

@Law360

Businesses are worried about facing litigation centering on their diversity, equity and inclusion initiatives amid the Trump administration's vocal opposition, but employers aren't in a rush to overhaul workplace DEI programs, according to a new report. https://t.co/rOp1OYb6Uh https://t.co/6Kg3LW8G5J

Bloomberg Law

@BLaw

President Donald Trump’s directive stopping federal agencies from bringing unintentional bias claims eliminates a tool for the EEOC to enforce new priorities, including combating the diversity programs it deems discriminatory. https://t.co/WS4SvYq7qw

Law360

@Law360

The directive that federal agencies stop recognizing disparate impact discrimination will likely stymie potential EEOC enforcement aimed at bias related to AI, pushing states and private plaintiffs to the forefront of regulating workplace AI. https://t.co/P68lDYNQDT