As we previously reported, on April 23, 2025, President Trump signed an Executive Order aimed at eliminating the use of disparate-impact liability and ordering federal enforcement agencies to stop the enforcement of antidiscrimination laws based on disparate impact theories.  The Executive Order directed the Attorney General and the Chair of the Equal Employment Opportunity Commission to assess all pending investigations, civil suits, or positions taken in ongoing matters under every Federal civil rights law that rely on a theory of disparate-impact liability, and to take appropriate action with respect to those matters consistent with the policy of the Executive Order.

The Equal Employment Opportunity Commission (“EEOC”) has now announced that it will administratively close all pending charges and investigations based solely on disparate impact by September 30, 2025.  Instead, “right to sue” letters will be issued by October 31, giving charging parties 90 days to pursue litigation in federal court. 

Disparate impact liability is a legal theory that is codified in Title VII of the Civil Rights Act of 1964 that allows a plaintiff to sue without fulfilling the burden of demonstrating intentional bias by pointing to practices that disproportionately affect protected groups.  In addition, under this doctrine, an employer can be held liable for neutral policies or practices that have a disproportionate impact on a particular group of individuals based on a protected characteristic. The Executive Order entitled, “Restoring Equality of Opportunity and Meritocracy” states, “It is the policy of the United States to eliminate the use of disparate-impact liability in all contexts to the maximum degree possible to avoid violating the Constitution, Federal civil rights laws, and basic American ideals.”

As a result of the Executive Order, the EEOC will no longer investigate or resolve charges based solely on disparate impact, and ongoing matters that also allege intentional discrimination may proceed only on that theory. Disparate impact lawsuits may still be filed in federal courts, and disparate impact discrimination remains prohibited by Title VII.  Should you have any questions, please contact Ali Law Group.

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