The Trump administration continues to cause upheaval in the world of employment law in February 2025. See the latest developments below.
EEOC Drops Seven Transgender Discrimination Lawsuits Following Executive Order
The U.S. Equal Employment Opportunity Commission (EEOC) has withdrawn seven lawsuits alleging workplace discrimination against transgender and nonbinary employees. The agency cited a conflict with President Donald Trump’s executive order recognizing only two genders, which was issued on January 20.
The EEOC stated in court filings that continuing the lawsuits may be inconsistent with the order and subsequent guidance from the Office of Personnel Management. As a result, affected workers must seek private legal representation if they wish to continue their cases.
Among the dropped cases was a lawsuit against a Chicago pizza chain, where a Black transgender employee was allegedly harassed and fired after being outed. Another involved a hotel franchisee accused of misgendering and firing a transgender housekeeper. Additional cases included claims of workplace harassment and discrimination at an Illinois hog farm, a fast-food franchise, and other businesses.
While the EEOC’s decision halts its legal action, the impacted employees still have the option to pursue justice through private lawsuits.
NLRB Acting General Counsel Rescinds Prior Policy Memoranda
On February 14, 2025, William Cowen, the Acting General Counsel for the National Labor Relations Board (NLRB), rescinded over a dozen policy memoranda issued by his predecessor, Jennifer Abruzzo. This action signifies a notable shift in labor policy, as the rescinded memoranda had addressed various issues, including expanded remedies, noncompete agreements, and severance agreements. Cowen’s rescission effectively “wipes the slate clean,” allowing for the establishment of a new labor policy agenda at the NLRB. That being said, the action does not overturn existing NLRB decisions made in recent years.
DOJ Initiates Enforcement Against DEI Initiatives
On February 5, 2025, Attorney General Pam Bondi issued memoranda signaling the Department of Justice’s (DOJ) intent to enforce President Trump’s Executive Order 14173, titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” This executive order aims to eliminate certain diversity, equity, and inclusion (DEI) initiatives deemed inconsistent with merit-based principles. The DOJ’s enforcement efforts reflect a broader governmental shift toward scrutinizing DEI programs within organizations, emphasizing adherence to traditional merit-based criteria in employment practices.
Jeff Burke is an attorney at MacElree Harvey, Ltd., working in the firm’s Employment and Litigation practice groups. Jeff counsels businesses and individuals on employment practices and policies, executive compensation, employee hiring and separation issues, non-competition and other restrictive covenants, wage and hour disputes, and other employment-related matters. Jeff represents businesses and individuals in employment litigation such as employment contract disputes, workforce classification audits, and discrimination claims based upon age, sex, race, religion, disability, sexual harassment, and hostile work environment. Jeff also practices in commercial litigation as well as counsels business on commercial contract matters.
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