Apr 2025 – Workplace Policies – EEOC’s New DEI Guidance Explained

THE EQUAL Employment Opportunity Commission, together with the Department of Justice, recently issued new guidance that significantly reshapes the legal landscape for workplace diversity, equity and inclusion programs. This comes on the heels of a series of executive orders issued by President Trump that direct federal agencies to eliminate what the administration characterizes as “illegal DEI” practices.

On March 19, the EEOC and DOJ issued two technical assistance documents meant to clarify how Title VII of the Civil Rights Act applies to DEI programs. While the documents reflect long-standing principles of anti-discrimination law, they also take a narrower view of what DEI initiatives are legally permissible.

For employers — especially those with formal DEI programs — this development creates new legal exposure, murky compliance territory and growing uncertainty around what is now permissible.

While the guidance outlines several potentially unlawful DEI practices, this ambiguity puts employers in a difficult position because the line between compliant and noncompliant practices is often hard to draw. Below is a practical breakdown of what’s changed, what remains unclear, and what senior leadership should consider doing now.

The guidance

The agency said DEI policies, programs, or practices may be unlawful under Title VII if they involve “an employment action motivated — in whole or in part — by an employee’s race, sex, or another protected characteristic.” The guidance also emphasizes that protections apply equally to majority and minority groups.

Steps employers can take

Given the legal uncertainty, the law firm Fisher Phillips recommends that companies consider the following actions:

• Engage legal counsel to review DEI-related policies, training materials, and communications. Focus on areas such as hiring, promotion, compensation, training, mentorship, internships, and affinity group policies.
• Shift from targeted DEI initiatives based on protected characteristics to programs that promote skillbuilding, access, and inclusion for all employees. Emphasize transparent, merit-based advancement and development opportunities.
• Ensure workplace programs emphasize workplace culture, professional development, and merit-based access to opportunities.
• Update your training to reflect the latest EEOC guidance. Make sure that decision-makers understand that DEI efforts cannot involve preferences or separate treatment based on protected traits.

Bottom line

For employers, this means a narrower path for legally compliant programs and greater exposure to discrimination claims from any employee group. If you have a workplace DEI program, it’s imperative that you revisit it and adjust it accordingly.