CHICAGO — A federal judge has issued a temporary injunction preventing the U.S. Department of Labor from enforcing certain aspects of a series of executive orders focused on limiting diversity, equity, and inclusion (DEI) initiatives among federal contractors and grant recipients.
Judge Matthew Kennelly of the U.S. District Court for the Northern District of Illinois has halted the Labor Department’s requirement that federal contractors certify compliance with these controversial executive orders. This provision has raised concerns among organizations, pressuring them to reassess their DEI policies amid potential severe financial repercussions under the False Claims Act.
The ruling stems from a lawsuit filed by Chicago Women in Trades, a nonprofit dedicated to preparing women for careers in skilled trades, which holds multiple contracts with the Department of Labor. A hearing regarding the organization’s request for a more permanent halt on the executive orders is scheduled for April 10.
The organization argues that the vagueness of these orders threatens its ability to fulfill its mission. Judge Kennelly expressed that the Chicago Women in Trades likely has a strong case, citing potential violations of free speech and the ambiguity of the executive orders themselves.
Kennelly’s ruling, while responding to a lawsuit in Illinois, follows a recent appeal court decision that lifted a nationwide injunction against similar orders in Baltimore. However, the judge opted not to extend this temporary restraining order to other federal agencies.
The Labor Department’s defense suggested that the certification requirement only pertains to illegal DEI programs, but the judge criticized this lack of clarity, stating that the implications of the executive orders are anything but clear.
He emphasized that many contractors might choose to refrain from any discussions related to DEI to avoid the risk of large financial penalties. His decision not only protects organizations like Chicago Women in Trades from funding cuts but also prevents any enforcement actions against them driven by the False Claims Act.
During a recent court hearing, the Trump administration argued that the organization’s request was premature, based on speculation regarding how the executive orders would be enforced. However, Chicago Women in Trades presented evidence of directives from the Department of Labor urging compliance with the DEI orders and reported experiencing negative impacts on subcontracting opportunities because of the executive orders.
For years, Chicago Women in Trades has actively worked with various stakeholders to enhance recruitment and retention of women in the trades, offering training to mitigate bias and harassment prevalent in the industry. The organization has benefited from federal grants aimed at expanding pathways for women in skilled trades, including initiatives established during the previous administration’s tenure.
