New England Biz Law Update
The Trump administration continues to advance its effort to scale back the use of disparate-impact liability, with additional federal agencies proposing or adopting changes to regulations governing recipients of federal funding.
The developments build on a broader administration initiative to limit enforcement actions based on statistical disparities alone and instead focus on claims involving intentional discrimination.
Disparate-impact liability permits challenges to facially neutral employment or other policies that disproportionately affect members of protected groups, even absent evidence of intentional discrimination.
Recent agency actions implement President Donald Trump’s 2025 executive order directing federal agencies to review and, where appropriate, repeal regulations relying on disparate-impact theories.
The changes affect agencies that administer federal financial assistance and are intended to align enforcement with the administration’s position that civil rights laws should focus on intentional discrimination rather than disparate outcomes.
Employment obligations remain unchanged
Although the administration is narrowing federal enforcement in certain contexts, employers should recognize that disparate-impact claims remain available under Title VII of the Civil Rights Act as interpreted by longstanding U.S. Supreme Court precedent and codified by Congress.
Private litigants may still pursue disparate-impact claims, and courts remain bound by existing law unless Congress or the Supreme Court changes the governing legal framework.
For employers, the practical effect is that while federal enforcement priorities may be changing, the underlying legal risks associated with hiring, promotion, testing, and other employment practices have not disappeared.
Employers should continue evaluating hiring procedures, promotion standards, testing requirements and other employment practices for potential adverse impact while monitoring further regulatory developments as agencies continue implementing the administration’s policy changes.
