Following the Supreme Court’s decision to eliminate affirmative action in college admissions last year, Republican attorneys general from 13 states sent a letter to Fortune 100 CEOs criticizing their workplace diversity, equity, and inclusion (DEI) initiatives. By threatening to prosecute companies for engaging in what they see as illegal preferences in hiring and contracts, they have put pressure on corporations to reassess their practices.
The first move was made by Missouri Attorney General Andrew Bailey, who filed a lawsuit against IBM for allegedly violating the Missouri Human Rights Act. Bailey claims that IBM practices illegal racial and gender quotas in their hiring process and bases employee compensation and job status on participation in what he alleges to be discriminatory DEI activities. According to Bailey, IBM’s policies favor job applicants of certain skin colors and punish managers who fail to comply with these alleged practices.
The lawsuit alleges that IBM uses a “diversity modifier” to meet hiring quotas based on race, color, national origin, sex, or ancestry, which violates Missouri’s Human Rights Law. This legal action serves as a warning to companies promoting diversity that they must ensure their initiatives comply with the law and avoid discriminatory practices.
In response to this legal scrutiny, companies should take several steps to protect themselves:
1. Evaluate DEI programs to ensure compliance with the law, including a thorough audit of the program’s language and implementation.
2. Consider potential operations in states where attorneys general have expressed opposition to DEI initiatives.
3. Strengthen internal controls over public communications regarding DEI efforts to ensure accuracy and consistency.
4. Maintain and communicate the business case for diversity, emphasizing the tangible benefits it brings to companies.
By seeking advice from legal experts, companies can understand the risks associated with advancing diversity and implement strategies to mitigate them effectively. The legal landscape regarding DEI initiatives is evolving, and companies must adapt their practices to comply with the law and avoid potential legal challenges.
Article Source
https://www.jdsupra.com/legalnews/missouri-attorney-general-sues-ibm-over-3779888/
