The Trump administration issued an executive order declaring that federal agencies are to discontinue use of disparate impact liability to administer antidiscrimination statutes.
The executive order directs agencies to conduct a review of regulations and other guidance that contemplate disparate impact liability. Notably, the directive applies across the entire government – meaning that this order will significantly impact litigation, compliance and enforcement priorities for federal agencies in the employment and financial services spaces, both of which have historically recognized disparate impact liability in enforcing civil rights laws.