On March 19, 2025, the U.S. Equal Employment Opportunity Commission (EEOC) and the Department of Justice (DOJ) issued new guidance aimed at clarifying when diversity, equity, and inclusion (DEI) practices in the workplace may violate Title VII of the Civil Rights Act. While DEI remains an important business priority for many organizations, these federal agencies are warning that employment decisions influenced by race, sex, or other protected characteristics—no matter the intent—may be unlawful. The EEOC also published a more detailed Q&A-style guidance document outlining common scenarios and compliance pitfalls.
What Employers Need to Know
Title VII prohibits discrimination in employment decisions based on protected characteristics such as race, sex, national origin, and religion. The EEOC and DOJ emphasized that this prohibition applies equally to all employees, regardless of background, and regardless of whether the action was intended to promote diversity.
Some examples flagged in the new guidance include:
- Making hiring or promotion decisions with an eye toward balancing workforce demographics
- Offering training, mentorship, or fellowships only to certain demographic groups
- Separating employees into different DEI training sessions based on protected characteristics
- Restricting access to ERGs (Employee Resource Groups)—employee-led affinity groups typically focused on shared characteristics or experiences—to certain identities
- Retaliating against employees who question or object to DEI practices on legal grounds
Importantly, an employment action can still be considered discriminatory even if a protected characteristic was only one of several factors in the decision. The agencies made clear that business interests in diversity or client preference are not valid legal defenses.
Key Takeaways
In light of this heightened scrutiny, employers should consider:
- Reviewing job applications, offer letters, handbooks, and policies to ensure they do not imply preferences based on race, sex, or other protected traits
- Evaluating DEI programs – especially those involving targeted opportunities – to ensure broad, equitable access
- Auditing ERGs and mentorship initiatives to confirm eligibility is inclusive and nondiscriminatory
- Training managers on how to implement DEI values in a legally compliant way
- Documenting legitimate, job-related criteria for employment decisions
This guidance applies to employers with 15 or more employees under Title VII, including private companies, public agencies, and labor organizations. Employers that receive federal contracts or funding may also face additional consequences, such as contract termination or loss of funding, if found in violation.
If your organization falls into any of these categories, please contact us at WorkWise Law – we may need to review and adjust your employee handbook, policies, or standalone DEI initiatives to ensure compliance.
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The information provided on this website includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. This website is not presented as a substitute for obtaining legal advice from a licensed attorney, nor should you rely on anything on this website for legal purposes without seeking legal advice from a licensed attorney.