Construction companies should reevaluate DEI policies under Trump

President Donald Trump’s executive order targeting what he terms “illegal DEI programs,” means construction companies should reexamine their diversity programs, according to an employment attorney interviewed by Construction Dive.

Companies might consider policy changes while reaffirming a commitment to DEI or take a wait-and-see approach until the consequences of Trump’s action become clearer. The order directs the Department of Labor to stop promoting diversity, hold contractors responsible for taking affirmative action, and prohibit so-called “workforce balancing” based on race, color, sex, sexual preference, religion, or national origin.

According to the order, “illegal DEI” would likely include quotas such as a mandate that 30% of new hires must be women, and set-asides such as reserving a vacant position for someone other than a white male. Preferences including giving a “plus” to a female or person of color because of their protected characteristic—even if the plus is given to break a tie—would likely be considered illegal.

The lawyer advises companies to work with their attorneys to perform an audit or assessment of DEI risk, which will be protected by attorney-client privilege. This includes evaluating all DEI-related initiatives, programs, and policies to ensure compliance with current law.