Maintaining DEI in Today’s Legal Landscape: Compliance Tips for Employers

Diversity, Equity, and Inclusion (DEI) practices have recently been challenged in both the private and public sector. DEI is a broad and often politically challenged term that is not defined in Title VII of the Civil Rights Act of 1964. It is important that companies understand the relevant law in support of DEI policies and practices. Promoting diversity, equity, and inclusion has been a longstanding objective-and, to some degree, arguably a requirement-of federal anti-discrimination law. Organizations increasingly recognize the value of an inclusive workplace and studies show that diverse teams ignite innovation, improve problem solving and boost employee satisfaction.

In 2025, the current White House Administration directed the Attorney General to take “appropriate measures to encourage the private sector to end illegal discrimination and preferences, including DEI,” to “deter” such “programs or principles”, and to “identify…potential civil compliance investigations” to accomplish such “deter[rence]”. The administration also announced that it would be terminating all “equity-related grants or contracts.” Consequently, many companies and government entities have reduced their diversity, equity, and inclusion efforts based on a concern that their practices would be challenged by the current administration. Despite the fear of intensified scrutiny, companies can still maintain policies labeled as DEI and should continue to evaluate their policies to ensure compliance with the law. The following are some practical tips for employers:

• Title VII of the Civil Rights Act of 1964 prohibits an employer from discriminating on the basis of race, color, religion, sex, or national origin in any employment decision. Employers do not need to abolish their DEI programs. Employers should make non-discrimination a core aspect of any DEI policy. Many of the legal challenges to DEI policies allege that the policies discriminate against an employee on the basis of a protected characteristic. An employer’s consideration of race, sex, or another protected characteristic may be considered unlawful by the EEOC and the DOJ.
• Audit your DEI programs. Employers can continue to demonstrate their organization’s commitment to equal opportunity and treating everyone with respect- regardless of race, gender, color, national origin, religion, gender identity, age, disability, veteran status, or any other characteristic protected by law. Analyze your existing policies, mentorship programs, and training materials to ensure the perception that one protected class is not favored over another.
• Define terms including diversity, equity, inclusion, and DEI, by emphasizing equal opportunity. Providing clear definitions and prioritizing equal opportunity can mitigate risk of misinterpretation and potential legal challenges.
• Employers should be aware of the EEOC’s guide on unlawful discrimination related to DEI in the workplace released on March 19, 2025. See What You Should Know About DEI-Related Discrimination at Workand What To Do If You Experience Discrimination Related to DEI at Work.  In these technical assistance documents, the EEOC notes that DEI policies may be unlawful under Title VII if an employment action is motivated by an employee’s race, sex, or other protected characteristic.

Examples of DEI discrimination include:

• Quotas or workforce balancing: Unlawfully using quotas or attempting to balance a workforce by race, sex, or other protected traits.
• Disparate treatment: Discrimination against applicants or employees in the terms, conditions, or privileges of employment.
• Retaliation: Taking adverse action against an employee who opposes or objects to employment discrimination related to DEI.
• Exclusionary groups: Employee resource groups or mentorship programs that exclude individuals based on a protected characteristic should be re-evaluated, as they are likely to be viewed as unlawful.

In today’s shifting legal and political landscape, employers should take a proactive approach to reviewing and refining their internal policies. Ensuring alignment with federal and state anti-discrimination laws helps mitigate legal risk while fostering a workplace culture grounded in equity and respect.

MWH Law Group assists employers in developing policies and DEI initiatives that align with legal requirements while supporting inclusive workplace goals. You can learn more about our services by visiting our Employment Practice page.