DEI in the Workplace

The Supreme Court’s Harvard decision has heightened risks associated with corporate diversity, equity, and inclusion (DEI) programs and initiatives, including corporate investments in minority owned financial institutions and funds. Though the Supreme Court’s decision did not address employment practices, the conservative activist group that alleged race-based college admissions in that case has launched broad side attacks on the DEI initiatives launched by companies in the wake of the murder of George Floyd. Claiming such initiatives violate Section 1981 of the 1866 Civil Rights Act, among other statutory and constitutional provisions, activist groups have both funded and filed reverse discrimination and other actions challenging DEI programs and initiatives. As a result, companies face novel and complex risk associated with programs that they have proudly and publicly declared reflect their values – values endorsed by their shareholders and that are key to employee morale. Crowell’s experienced team is working with a range of clients across industries to mitigate the ensuing risk.