From the Oval Office to Your Office: A Guide on Executive Orders
Presidential executive actions make headlines, but what do they really mean for workplaces and leaders like you? Let’s break it down.
Every president—except William Henry Harrison—has used executive orders (EOs) to shape policy. FDR still holds the record with 3,721 EOs, many tied to World War II.
In today’s political climate, EOs are getting more attention as presidents increasingly rely on them to bypass congressional gridlock. But here’s the catch—executive actions aren’t unlimited. They must align with existing laws and the Constitution, and they often face legal challenges or pushback from Congress.
For business leaders, this isn’t just about politics—it’s about staying ahead of regulatory changes, understanding compliance shifts, and making informed strategic decisions that could directly impact your organization.
This guide will give you the insights you need to stay informed, stay agile, and turn civics into a competitive advantage.
Presidential Power Moves: Three Types of Executive Actions
Presidents have several tools at their disposal to shape policy, each carrying a different level of authority and impact. Some actions, like executive orders, are legally binding, while others, like executive memoranda and proclamations, serve as guidance or signals of policy direction.
Understanding the nuances of executive actions empowers you as a leader. It gives you the insight to navigate change, anticipate challenges, and position your organization for success in an evolving policy landscape.
1. Executive Orders (EOs): Big Levers
EOs are legally binding directives that tell federal agencies how to enforce policies. EOs must be based on constitutional or statutory authority, the legal foundation that gives a president the power to take action.
Constitutional authority comes directly from the U.S. Constitution, meaning the president uses powers explicitly granted to them, such as commanding the military or enforcing laws.
Statutory authority comes from laws passed by Congress, meaning the president acts based on powers lawmakers have delegated to the executive branch.
Simply put, every executive action must be backed by either the Constitution or a law that Congress has approved—otherwise, it can be challenged in court and potentially overturned.
Why Your Workplace Should Care
EOs can directly affect regulations, government contracting, labor laws, and environmental standards.
EOs can directly shape the business landscape, influencing everything from hiring practices to supply chain regulations. If your organization works with the federal government, an EO can quickly alter contracting rules, wage requirements, or workplace protections.
Even if you’re not a government contractor, changes in environmental policies, labor laws, or industry regulations can create new compliance challenges—or open up new opportunities. Staying informed about EOs helps your organization adapt quickly, mitigate risks, and position itself for success in an evolving regulatory environment.
Examples:
Executive Order 13672 (2014): Prohibited federal contractors from discriminating based on sexual orientation or gender identity.
Federal Minimum Wage EO (2021): Raised the minimum wage for federal contractors (later challenged in court).
2. Executive Memoranda: Subtle Shapers
Executive memoranda might not make the headlines as often as executive orders, but they play a crucial role in shaping federal policy “behind the scenes.” These directives guide federal agencies on how to implement or interpret existing policies, often influencing administrative priorities without the legal weight of an executive order. While less formal, memos can still redirect resources, adjust enforcement priorities, or set the tone for agency decision-making.
Examples:
DACA Memo (2012): Allowed certain undocumented individuals to stay in the U.S.
Scientific Integrity Memo (2009): Strengthened protections against political interference in research.
Why Your Workplace Should Care
Memos often affect administrative policy changes, funding allocations, or enforcement priorities.
For businesses, staying attuned to executive memoranda is essential—what may seem like a subtle shift could lead to changes in funding and compliance expectations or impact your operations. They’re the “quiet influencers” that can still ripple across industries and often signal shifts in enforcement priorities or funding.
3. Presidential Proclamations: Ceremonial or Consequential
Proclamations are critical in shaping policy and responding to national challenges. Presidential proclamations fall into two categories—symbolic and substantive. The difference comes down to whether a proclamation is just ceremonial or actually enforces change. Some proclamations make history, others just make headlines—but both serve a purpose.
Symbolic proclamations often raise awareness, celebrate cultural moments, or highlight important causes, but they don't create or enforce laws.
Substantive proclamations have real legal impact and are backed by authority under existing laws.
Symbolic Examples:
Thanksgiving Proclamation (1863) – Established Thanksgiving as a national holiday.
National Ice Cream Day (1984) – Declared the third Sunday in July to celebrate ice cream and the dairy industry.
National Women’s History Month (1987) – Recognized March as a month to honor women’s contributions to history.
Substantive Examples:
Emancipation Proclamation (1863) – Declared enslaved people free in Confederate states.
Nixon’s Pardon (1974) – Granted former President Nixon a full pardon after Watergate.
Hawaiian Coral Reef Protection Proclamation (2000) – Created a protected marine reserve, later expanded into a national monument.
Why Your Workplace Should Care
Proclamations may influence public policy and legal obligations in areas such as trade, immigration, and public health.
While many proclamations simply establish national observances, others can directly impact your business. Some influence trade, affecting tariffs and import/export rules. Others shape immigration policies, from entry bans to amnesty programs. And some address public health, like those issued during pandemics or natural disasters to allocate resources, restrict travel, or declare national emergencies. Understanding these proclamations can help you stay ahead of potential shifts in policy and regulation.
Limits of Executive Actions
As we’ve established, executive actions are a powerful tool for presidents to shape policy without waiting for Congress, but they come with limits and risks. While they can drive quick changes in areas like business regulations, public policy, and federal operations, they’re not always permanent and can face legal or legislative challenges.
Whether you’re a business leader, policymaker, or just someone trying to keep up with government decisions, here are four key things to understand about executive actions and their impact.
1. Legal Standing and Limits
Executive actions must be based on existing laws or constitutional authority. If they exceed those limits, courts can block them, and Congress can take action to override or restrict them.
2. Stability vs. Reversibility
EOs don’t require congressional approval, so they’re a fast way to make policy changes. However, a new president can easily undo them—so your business shouldn’t bank on them lasting forever.
3. Compliance and Risk
If you’re a federal contractor, executive orders aren’t optional—you have to follow rules on hiring, wages, and anti-discrimination policies. And if you’re in industries like finance, healthcare, or energy, stay on your toes. Policy shifts can quickly change enforcement priorities, impacting regulations, compliance, and your business strategy.
4. Checks and Balances
If an executive order oversteps presidential authority, the courts can shut it down. And if Congress isn’t on board, they can override it by passing new laws.
4-Steps to Navigating Executive Actions Like a Pro
Staying informed isn’t just about reacting—it’s about being proactive. Monitoring new executive orders, understanding potential legal challenges, and adapting policies early can help your organization stay compliant and competitive. Whether you’re a federal contractor, part of a highly regulated industry, or just looking to stay ahead of shifting enforcement priorities, here’s how you can prepare, engage, and navigate these changes effectively.
✅ Monitor Executive Actions
Follow updates from the Federal Register and White House.
Work with legal and compliance teams to assess risks.
✅ Evaluate Legal Challenges
If an EO is controversial, it may face legal hurdles before taking effect.
Industry groups can advocate for or challenge executive actions.
✅ Adapt Policies Proactively
Federal contractors should review hiring, wage, and compliance policies.
Highly regulated industries should prepare for shifts in enforcement.
✅ Engage with Policymakers
Join industry advocacy groups to stay informed, and if needed, shape policy.
Work with legal experts to navigate changing regulations.
Final Thoughts
Executive actions are a core part of how presidents govern, and they can have real implications for workplaces. While they allow for swift policy changes, they’re not set in stone—legal challenges and political shifts can change their impact over time.
The best approach is to stay informed, be adaptable, and engage with policymakers. Understanding executive actions isn’t just about compliance—it’s about making smarter strategic decisions in our constantly evolving landscape.
Have questions? IGC Institute is here to help. Our nonpartisan nonprofit is driven to provide unbiased civics education to you and your employees.