Navigating the Changing Landscape of DEI Compliance in 2025 — What Leaders of Small and Mid-Sized Businesses Need to Know

By Adam Calli, MSM, SHRM-SCP

In the July edition of Virginia Business Magazine, Virginia’s premier state-wide business publication, I had the honor to be a featured source for the article “HR leaders tread carefully in shifting DEI landscape.” It provides organizational leaders with valuable insight into what’s in place and changing in the world of Diversity, Equity, and Inclusion (DEI). Diversity, equity, and inclusion have been critical pillars of healthy workplace culture and organizational success. Yet in today’s shifting legal and political environment, many business leaders are left asking themselves: “Where do we stand now, and what should we be doing to stay compliant and competitive?”

The article examines how the second Trump administration is influencing DEI programs and EEOC enforcement priorities in 2025. It’s a topic that’s generating significant uncertainty among employers — especially those leading businesses with fewer than 500 employees, who often lack large in-house legal or HR teams to help navigate compliance.

Here are some key takeaways from the article and what they mean for you as a business owner or leader:

1. DEI Scrutiny Could Increase — But Abandoning DEI Is Risky

Even amid political shifts, DEI efforts remain vital to talent attraction and retention. As noted in the article, some organizations are getting nervous about potential changes in the law and public perception.

My advice: Don’t panic or drastically change your DEI strategies solely based on political predictions. However, it’s wise to review your programs for potential legal risks or language that could be misinterpreted as discriminatory.

The right approach is balance — continue fostering inclusive workplaces while ensuring your initiatives comply with federal and state laws.

2. The EEOC Will Remain Active — Regardless of Administration

While enforcement priorities may shift, the EEOC’s work isn’t going away. Employers should ensure:

• Job postings avoid language implying preference based on race, gender, or other protected characteristics.
• Training materials and DEI statements align with equal opportunity laws.
• Metrics used in DEI programs don’t inadvertently create legal exposure (e.g., quotas or “set-aside” programs favoring one group over another).

3. Proactive Review Is Key

This is a great time for business owners to step back and evaluate current practices. Take a fresh look at your policies, diversity statements, and how you communicate your commitment to inclusion. Proactive adjustments now can help avoid bigger issues later.

Even if political winds change, courts and enforcement agencies remain focused on whether workplace practices comply with longstanding anti-discrimination laws.

Bottom Line for Leaders of Small and Mid-Sized Businesses

The coming year could bring new challenges and scrutiny around DEI programs, but pulling back entirely is neither required nor wise. Instead, organizations should:

✅ Review DEI programs and materials for legal compliance.
✅ Avoid reactive decisions driven purely by politics.
✅ Stay focused on building inclusive, equitable workplaces that attract and retain talent.

For a deeper dive, I encourage you to read the full Virginia Business article, “HR leaders tread carefully in shifting DEI landscape.” where I and other experts discuss these evolving issues in greater detail.

At Arc Human Capital, we’re here to help leaders navigate these complexities. If you’d like guidance in reviewing your DEI programs or broader HR policies, please reach out. Together, we can build workplaces that are both inclusive and compliant!