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Phone: 915.533.4424
Fax: 915.546.5360

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Week One in the Trump Administration

Contact Clara (C.B.) Burns, Gilbert L. Sanchez and Isaac J. Blanco - January 28, 2025
   “There are decades when nothing happens, and there are weeks when decades happen.” 1

It is fair to say that the Trump Administration has come out of the gates swinging, undoing many of the policies that were implemented under the Biden administration, but also decades-old policies. Nowhere is this more evident in the world of labor and employment law. Here are some of the highlights:
 
  • On his first day in office, President Trump issued an executive order announcing the federal government will recognize only two sexes, directing all federal agencies to replace the term “gender” with “sex” in official documents, ensuring that government-issued identification will reflect biological sex assigned at birth, requiring federal agencies to reverse any policies that allow gender-identity-based access to single-sex spaces, such as bathrooms, and rescinding numerous Biden-era guidance, including the 2024 EEOC workplace harassment guidance. He also named Andrea Lucas as Acting Chair of the EEOC; she is a known critic of Diversity, Equity and Inclusion (“DEI”) programs and of policies focusing on LGBTQ+ workers in the workplace.
  • President Trump appointed Andrew Ferguson as the new chair of the Federal Trade Commission. In all likelihood, this (in combination with other appointments the President will make to the FTC) means that the non-compete rule issued by the Biden Administration, banning employment noncompete agreements (which is currently enjoined) will go away in its entirety, as Chair Ferguson issued strong dissenting statements opposing the rule when it was issued.
  • By email sent late on January 27, 2025, President Trump fired Jennifer Abruzzo from the powerful position as General Counsel of the National Labor Relations Board, and also fired Gwyn Wilcox, one of the NLRB’s two Democratic members. Abruzzo was responsible for some of the most pro-union and unusually expansive workers’ rights policies in the history of the NLRB. Abruzzo’s firing was not unexpected and is not without precedent, as President Biden fired her predecessor, Peter Robb, on Inauguration Day four years ago. With these firings, President Trump will be able to install a Republican majority with more management-friendly policies.
  • The White House rescinded Executive Order 14055, a Biden-era executive order which required government contractors taking over a contract to offer employment to its predecessor’s employees as a “right of first refusal.” Rescission of this executive order allows government contractors to hire their own employees without first offering employment to the predecessor contractor’s employees.
  • The Trump administration rescinded Executive Order 13988, another Biden-era executive order that directed federal agencies to review and update all policies prohibiting discrimination based on gender identity or sexual orientation to align with the Supreme Court’s decision in Bostock v. Clayton County. It is important to note, however, that Bostock v. Clayton County is still binding Supreme Court precedent, and its holding that Title VII’s prohibition of sex-based discrimination includes discrimination based on sexual orientation and gender identity is not disturbed by the rescission of this executive order.
  • And last but certainly not least, on January 21, 2025, President Trump issued a new executive order, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” which further targets DEI, as well as accessibility policies. Significantly, this order revokes Executive Order 11246, issued by President Lyndon Johnson in 1965, which established affirmative action requirements for government contractors. President Trump’s new order now relieves government contractors from maintaining affirmative action programs for women and minorities. However, it does not affect affirmative action obligations with respect to disability and veterans’ status. And of course, laws such as Title VII, the Rehabilitation Act, and the Americans with Disabilities Act are still in full force to prohibit unlawful discrimination in the workplace, in both the government and private sectors.
There will undoubtedly be more developments in the upcoming weeks and months, and we will keep you apprised of those as they occur.

If you have any questions, please feel free to contact Kemp Smith’s Labor and Employment Department at 915-533-4424.

1 Quote is attributed to Vladimir Lenin.