EEOC and DOJ Issue Clear Warning: DEI-Based Employment Practices May Be Unlawful

In newly released guidance, the U.S. Equal Employment Opportunity Commission (EEOC)—in coordination with the U.S. Department of Justice (DOJ)—has issued a direct and unambiguous message to employers across the country:

Employment actions based on race, sex, or other protected characteristics—regardless of DEI-related goals—are unlawful under Title VII of the Civil Rights Act of 1964.

This guidance arrives amid a broader federal shift toward restoring merit-based opportunity, as reinforced in the January 21, 2025 Presidential Action titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.”

Employers must now recognize that DEI is not a legal defense, a protected framework, or a recognized exception under federal law.

What the New EEOC/DOJ Guidance Clarifies

DEI programs that were once encouraged or considered progressive are now under strict federal scrutiny. According to the EEOC:

• Title VII does not define or authorize “DEI” as a legal category.
• Programs labeled as “DEI” may violate Title VII if they result in any employment action—hiring, firing, promotion, compensation, or access to training—motivated in whole or in part by a person’s race, sex, or other protected characteristic.
• Discrimination is unlawful, even if identity-based factors were not the sole or deciding reason for the employment decision.
• Title VII protections apply to all individuals, not just underrepresented groups. There is no such thing as "reverse" discrimination in the eyes of the law—there is only discrimination.

The EEOC guidance also states that:

• DEI-based segregation in mentorship, training, or employee resource groups (ERGs) may violate Title VII.
• Internships, fellowships, and leadership development programs cannot be limited based on race or sex.
• Even DEI training content may violate federal law if it creates a hostile work environment or results in discriminatory treatment.

What This Means for Employers

Employers should treat this new guidance as a clear legal directive:

DEI-based decision-making must be eliminated from all employment practices.

That includes:

• Dismantling or reworking DEI initiatives that take protected characteristics into account
• Ending quotas, preferences, or exclusionary practices based on identity
• Avoiding training content that promotes stereotypes or divides workers along racial or gender lines
• Ensuring all employment actions are based on individual merit, qualifications, and performance, not group identity

This is not merely a policy recommendation—it is a legally enforceable position. Title VII enforcement now explicitly includes DEI-related discrimination, and both private- and public-sector employers face potential litigation or federal intervention if they continue these practices.

What Should Employees Know?

Employees, applicants, interns, and participants in training or leadership programs now have clearly defined rights under the new federal guidance. If you believe you’ve been harmed by a DEI-related employment decision, the EEOC provides a process for:

• Filing a charge of discrimination
• Investigating claims of disparate treatment based on identity
• Pursuing remedies through conciliation or, if necessary, federal litigation

Workers are protected regardless of race, sex, or background, and may challenge any policy or practice that uses identity as a factor in employment decisions.

The Bottom Line: DEI Must Comply with Federal Law—or Be Discontinued

The message from Washington is unified and unequivocal:
Workplace equality must be based on the law—not labels.
DEI programs that sort, select, or treat employees differently based on identity are now a legal liability.

At Dyas HRD, we support employers—especially in construction, federal contracting, and compliance-sensitive industries—in reviewing, restructuring, or terminating DEI-related policies that may now be in violation of federal law. We help clients shift toward neutral, lawful, performance-based employment systems that withstand legal scrutiny and support true equal opportunity.

Need to Review or Replace Your DEI Program? We Can Help.
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Equal opportunity must be rooted in fairness and legality—not identity-based treatment.