Employers Grappling with Trump’s Abrupt Shifts on DEI, Immigration Policies

Employers are experiencing a roller coaster ride of rapid-fire policy shifts and persistent volatility during the first year of the second Trump administration, according to Littler’s 2026 Workplace Policy Institute survey of more than 300 legal and HR leaders.

Diversity, equity, and inclusion (DEI) and immigration policies are two of the areas where organizations are registering the biggest shifts. The report, which was just published, is based on survey responses collected in February and March of 2025.

A significant 71% of organizations reported impacts from DEI policy changes, following executive orders that rolled back federal programs and signaled increased private-sector investigations. A majority of respondents (55%) said they were considering new or further rollbacks of their DEI programs in some way.

Meanwhile, 63% of employers are grappling with workforce staffing challenges stemming from stricter immigration policies, leading some to reduce visa sponsorships.

“This [figure] surpasses the unease expressed about workforce staffing in our 2025 Employer Survey, when 58% said their organization was concerned that such hurdles could arise due to the Trump administration’s immigration policies,” Littler’s authors wrote.

Beyond federal shifts, a patchwork of state and local regulations continues to challenge compliance teams, with nearly 9 in 10 employers reporting impacts from local legislative changes, particularly regarding paid leave and pay transparency.

The regulatory horizon remains busy this year. With quorums now established, federal agencies like the Equal Employment Opportunity Commission (EEOC) and National Labor Relations Board (NLRB) are poised to ramp up activity regarding worker classification, AI use in hiring, and religious employee rights. For in-house teams, the priority remains balancing these evolving federal mandates against a rising tide of state-level requirements.

The full report can be found here.