In our previous post, we discussed the nationwide temporary restraining order issued by the United States District Court for the North District of Illinois that temporarily prevented the Department of Labor from requiring federal contractors to certify that they do not operate any diversity, equity, or inclusion programs that violate the Trump Administration’s recent Executive Orders (“Certification Provision”).
On April 15, 2025, the Court extended its restrictions by partially granting the Chicago Women in Trades’ (CWIT) motion for a nationwide preliminary injunction. For the time being, this means that the DOL is prohibited from requiring any federal contractor or grant recipient to comply with the Certification Provision. In its ruling, the Court reasoned that CWIT was likely to win on the merits of its First Amendment challenge as to the Certification Provision and that a nationwide injunction was necessary. “A nationwide injunction is appropriate to protect grantees and contractors who will have to choose between giving up their First Amendment rights on one hand and bearing the risks inherent in biting the hand that feeds them on the other.”
However, the ruling does not prohibit other federal agencies from enforcing the Certification Provision. Nor does the order prevent the DOL or other agencies from enforcing the Termination Provision of the Executive Orders, which gives federal agencies authority to terminate “equity related” contracts and grants. The Court did grant CWIT’s motion preventing the DOL from terminating one of CWIT’s grants. However, as to the remaining four grants CWIT sought to protect, the Court held that CWIT did not make a sufficient showing that the Termination Provision would endanger those specific grants because they were not exclusively comprised of equity-related projects.
Ballard Spahr’s Labor and Employment Group will continue to provide developments on the new Administration and its impact on both private and public sector employers.