Dropping DEI could trigger lawsuits, despite Trump’s order

Experts have warned that U.S. companies scaling back diversity, equity, and inclusion (DEI) initiatives in response to President Donald Trump’s executive order may risk an increase in workplace discrimination lawsuits. The order, which directs federal agencies to terminate DEI programs and encourages private companies to follow suit, has led some businesses to end or reduce such efforts. However, DEI policies like pay audits, diverse hiring practices, and equitable promotions are key tools for ensuring compliance with anti-discrimination laws. Jason Solomon, director of the National Institute for Workers’ Rights, commented: “When companies are sued by women or people of color and they’re held liable for discrimination… the Trump administration can’t save them and nothing in this executive order can save them.” Critics of DEI argue that such programs can sometimes lead to reverse discrimination claims, but experts highlight that dismantling these policies could expose companies to violations of federal and state anti-discrimination laws. The U.S. Equal Employment Opportunity Commission (EEOC) and state agencies received over 130,000 discrimination complaints in 2023, underscoring the potential legal risks for companies that abandon DEI programs.