President Trump recently issued several Executive Orders aimed at Diversity, Equity, Inclusion and Accessibility (“DEI” or “DEIA”) initiatives. On January 20, 2025, the President signed an order entitled “Ending Radical and Wasteful Government DEI Programs and Preferencing” and on January 21, 2025, he signed an order entitled, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity”.
These Orders revoke several executive orders previously in effect for decades, including a 60-year-old Johnson Administration Executive Order requiring federal contractors to maintain anti-discrimination programs and engage in equal opportunity hiring practices and a 31-year-old Clinton Administration Executive Order authorizing federal action to address environmental justice in low-income and minority communities.
While predominately directed at agencies, employees and contractors of the federal government, employers in California should take note of the DEI requirements under California law.
What is DEI?
- Diversity refers to the presence of differences within a given setting, encompassing characteristics such as race, gender, age, sexual orientation, disability, and more.
- Equity focuses on ensuring fair treatment, opportunities, and advancement for all individuals, recognizing that different people may need different levels of support to succeed.
- Inclusion involves creating environments in which all individuals, regardless of their background or identity, feel valued, respected, and able to contribute meaningfully.
These three pillars of DEI work together to foster an environment where people from all walks of life can thrive and contribute without facing discrimination or exclusion based on inherent characteristics.
Legal Framework for DEI in California
California is widely regarded as a pioneer in implementing legislation that advances diversity, equity, and inclusion across various sectors. The state has passed numerous laws that affect businesses, educational institutions, and government agencies.
California Fair Employment and Housing Act (FEHA)
The Fair Employment and Housing Act (FEHA), one of the cornerstone civil rights laws in California, prohibits discrimination based on race, color, religion, sex, gender identity, sexual orientation, national origin, disability, and more. FEHA mandates that employers take steps to ensure their workplaces are free of discrimination and harassment.
California Equal Pay Act (CEPA)
California’s Equal Pay Act (CEPA) strengthens the mandate for wage equity by ensuring that employees in the same workplace are paid the same for substantially similar work, regardless of gender or race. The law requires employers to evaluate compensation and make adjustments if there are gender-based wage gaps.
SB 973 – Corporate Diversity Reporting
Enacted in 2020, SB 973 mandates that private companies with 100 or more employees submit an annual report to the California Department of Fair Employment and Housing (DFEH) regarding their workforce composition by race, ethnicity, and gender. This law supports efforts to measure and improve DEI practices within organizations. The law’s reporting requirements help increase transparency and create a benchmark for employers to gauge their progress in diversity and inclusion efforts.
Workplace Anti-Discrimination Laws
Various sections of California’s Labor Code and Government Code also play significant roles in promoting DEI in the workplace by protecting employees from discrimination and harassment based on protected characteristics. These codes are broad and provide employees with the legal right to file complaints if they experience discrimination or harassment. Employers are also required to take affirmative steps to prevent and address these issues.
Conclusion
California has long been a leader in advocating for diversity, equity, and inclusion through a comprehensive set of laws and policies. From public sector employment practices to mandates for private companies, California provides a legal framework that pushes employers to not only comply with anti-discrimination laws but to actively foster inclusive environments.
As legal and social landscapes evolve, businesses in California must remain proactive, ensuring they stay compliant with DEI regulations and integrate best practices that promote fairness, inclusivity, and the celebration of diversity in all sectors, despite the Executive Orders recently signed under the current Administration.
If you have any questions regarding DEI, feel free to contact us at info@mnklawyers.com
