This week, we explore how key changes introduced by President Trump’s Executive Order 14281, “Restoring Equality of Opportunity and Meritocracy” (“EO 14281”), raise important questions for employers navigating compliance with varying federal, state, and local laws.
New Executive Order Targets Disparate Impact Claims Nationwide
EO 14281 poses significant challenges for employers because it seeks to limit disparate impact liability but clashes with established state and local regulations and laws, such as New York City’s law regarding the use of automated employment decision tools. This tension underscores the increasing complexity of managing artificial intelligence (AI)-driven decision-making in the workplace amid shifting legal standards.
This week’s key topics include:
- the scope of EO 14281;
- conflicts between EO 14281 and existing federal, state, and local laws; and
- best practices to mitigate risks in AI employment decisions.
Epstein Becker Green attorneys Marc A. Mandelman and Nathaniel M. Glasser unpack these developments and provide employers with practical strategies to stay compliant and address critical workforce challenges.