The Connection Collective | The Compliance Conundrum

Hello Trailblazers & Changemakers,

ICYMI (although, I’m sure you didn’t miss it), with the new administration has come a wave of executive orders and labor rulings that is rewriting the rules of workplace inclusion. If you’re in any way involved with DEI efforts or ERGs, you’ve probably felt the shift. What was once seen as culture work is now a potential compliance minefield.

Lots of companies have responded to these new rulings by abandoning their DEI initiatives entirely. Better safe than sorry, right? We, of course, disagree. New rules simply mean new strategies for DEI leaders. Hopefully, this edition of The Connection Collective can help you break it down.

The Legal Plot Twist No One Saw Coming

Or, maybe, the one that everyone saw coming. 

New executive orders are cracking down on identity-based programs. Here’s what’s changing:

• EO 14151: Eliminates federal funding for DEI-based programs and hiring preferences.

• EO 14173: Requires contractors to certify hiring practices are identity-neutral.

• EO 14168: Redefines gender in federal law — impacting benefits, pronoun policies, and ERG scope.

Meanwhile, the National Labor Relations Board (NLRB) has instituted rulings that reinforce the idea that employee groups must be employee-led. Ever heard of the Electromation, Inc. vs. NLRB case?

Basically, Electromation created several “Action Committees” to gather employee feedback on issues like wages, working conditions, and the like. Committee meetings were organized by management and run by HR. Because Electromation set up the committees, selected issues, and had supervisors involved, the NLRB found the company had unlawfully interfered with employees’ rights to organize independently. This case set the precedent that employee groups must be genuinely employee-led and free from employer control in order to stay compliant.

All of this to say, gone are the days of top-down employee resource groups. ERGs must remain voluntary, inclusive, and independent to avoid crossing legal lines.

So What Does This Mean for Your ERGs?

Many ERGs were built for culture and connection — not compliance. But today, legal clarity is essential to creating the sense of community and psychological safety they were always meant to provide.

Here’s what companies need to watch:

• Avoid identity-based membership restrictions. To stay compliant, ERGs should welcome any employee who wants to join, regardless of background. This reinforces allyship and avoids legal scrutiny.

• Don’t let ERGs serve as backdoor grievance channels. ERGs shouldn’t be used to voice or resolve workplace complaints. Leave that to HR to avoid violations.

• Keep structured policy conversations out of ERG meetings. Avoid formal discussions about pay, promotions, or workplace policy, which can quickly cross into prohibited territory.

• Limit executive involvement to logistical or budget support. Company leaders can — and should! — fund and promote ERGs—but shouldn’t influence agendas, decisions, or leadership selection.

What To Do Next: Compliance by Risk Level

You don’t need to overhaul your ERG program, but you do need to assess where you fall on the risk spectrum and act accordingly. 

How Chezie Helps You Stay Compliant and Connected

We get it: These sudden legal shifts can leave you feeling burnt out from constantly cutting through red tape. But you don’t have to go it alone.

Chezie’s platform helps companies:

• Track ERG engagement and spending

• Ensure DEI initiatives align with legal guidance

• Elevate and support ERG leaders without overburdening them

• Automate the boring stuff so you can focus on culture and impact

In short, we help you protect what matters: your people and your purpose.

We’re entering a new era of employee community building. It’s one where connection and compliance have to go hand-in-hand, and where employees are called upon to lead the charge. But with the right strategy, the right policies, and the right tools, you don’t have to choose between doing what’s right and doing what’s legal. Remember: the question isn’t should you invest in ERGs. It’s how you do it the right way.

Want to learn more about navigating this new landscape? Download Chezie’s newest toolkit for a breakdown of recent executive orders, the do’s and don’ts of ERGs, and how to build legally sound, high-impact employee communities

Onward and upward,
Dumebi

If you're interested in exploring how Chezie can enhance your Employee Resource Groups (ERGs), I invite you to schedule a demo. We also offer a wealth of resources to support your ERG initiatives:

• ERG Toolkit: Comprehensive guides and templates to help you establish and manage effective ERGs.

• Blue Pages: A collection of articles and thought pieces on best practices for ERGs.

• ERG Leaders Community: Join discussions with ERG and DEI leaders to share experiences and strategies.

Lastly, connect with me on LinkedIn for more insights and updates.