An Executive Order (EO) is a directive given out by the President of the United States that has the force and effect of law. It is an instrument used by the President to direct specific government actions or policies in accordance with the laws of the nation. Executive orders are often used to direct executive branch agencies to perform specific tasks or take certain actions in support of the directives of the order.
The Powers and Limitations of Executive Orders
The President does not have unrestricted authority and they cannot create laws by enacting executive orders. Executive orders are limited to the areas where the President has power to act, such as national security, foreign policy, and immigration. The Executive orders cannot be used to overrule existing laws, such as the Constitution or laws that were passed by Congress.
How Might Executive Orders Affect Businesses?
Executive orders can have significant implications for businesses. For example, the most recent example of an executive order, the “Buy American and Hire American” order (EO 13788) issued by President Trump requires federal agencies to purchase goods and services from U.S.-based companies instead of foreign suppliers. This puts more emphasis on businesses to seek government contracts and incentivizes more hiring of American workers. It is important for businesses to be aware of any executive orders that might affect them and take the necessary steps to ensure they are compliant.
Conclusion
In conclusion, executive orders can have a significant effect on businesses. It is important to understand the power and limitations of executive orders, and also to be aware of any executive orders that might affect them. As with any legal tidbit, it is best to consult a legal expert for advice on the proper steps to take to remain compliant.