On March 19, 2025, the U.S. Equal Employment Opportunity Commission (EEOC) and the Department of Justice (DOJ) issued guidance clarifying how diversity, equity, and inclusion (DEI) initiatives intersect with Title VII of the Civil Rights Act of 1964. The guidance provides critical direction for employers seeking to implement inclusive workplace policies while ensuring compliance with federal antidiscrimination laws under the Trump administration.
Considerations for Employers
The guidance reinforces the EEOC’s and DOJ’s positions that DEI efforts must align with Title VII’s prohibition against employment decisions based on protected characteristics such as race, color, religion, sex, or national origin. According to the guidance, even well-intended diversity initiatives can create legal risks if they involve preferential treatment or exclusion based on these attributes.
Here are some key takeaways from the guidance:
Title VII protects all employees equally. The law applies universally, protecting individuals of all backgrounds. DEI programs must be structured to promote inclusion without resulting in differential treatment based on protected characteristics.
No exemptions for business necessity or diversity goals. You cannot justify employment decisions that consider race, gender, or other protected characteristics by citing business necessity or general diversity objectives.
Client or customer preferences do not justify discrimination. Employment decisions influenced by external preferences—such as those of clients, customers, or business partners—are not valid defenses under Title VII. Organizations must ensure hiring, promotions, and other employment actions remain neutral and legally compliant.
Broad applicability of Title VII. Title VII applies to employers with 15 or more employees, covering applicants, employees, interns, and trainees. Additionally, state laws may impose different thresholds and requirements, necessitating a comprehensive compliance strategy.
Strategic Next Steps for Employers
To mitigate legal risks while maintaining your commitment to inclusive workplaces, your organization might consider:
- Conducting a legal review of your current DEI policies and programs to ensure they align with Title VII;
- Implementing training programs for HR professionals and leadership teams on lawful diversity practices;
- Focusing on broad inclusion strategies; and
- Auditing employment decisions on a regular basis to confirm they are based on objective, job-related criteria rather than demographic considerations.
Conclusion
The latest EEOC and DOJ guidance highlights the importance of balancing DEI efforts with legal compliance.
Cameron Ritsema is an attorney with Bodman PLC in Grand Rapids, Michigan, and can be reached at critsema@bodmanlaw.com.