Nike under federal investigation for DEI programs

The EEOC is probing Nike over claims that its diversity, equity and inclusion initiatives may have resulted in unlawful discrimination against white employees, escalating scrutiny of corporate DEI practices.

The U.S. Equal Employment Opportunity Commission (EEOC) is investigating Nike over allegations that its diversity, equity, and inclusion (DEI) policies discriminated against white employees.

The EEOC is seeking information from Nike about its layoff criteria, how it tracks and uses data on worker race and ethnicity, and its allegedly race-restricted mentoring or career development programs.

The big picture: Nike stated it has cooperated with the EEOC, having shared thousands of pages of information, but called the recent subpoena “a surprising and unusual escalation.”

  • The investigation is led by EEOC Chair Andrea Lucas, who has been vocal in criticizing DEI efforts as potentially discriminatory and has prioritized targeting such policies.
  • Nike is the highest-profile company known to be targeted by the EEOC in a formal, public anti-DEI investigation; financial firm Northwestern Mutual has also been probed.

Driving the news: The action does not stem from an employee’s complaint but from a “commissioner’s charge” initiated by Lucas herself in May 2024, a process rarely used for launching investigations.

  • The commissioner’s charge followed a letter from America First Legal, a conservative group tied to Trump’s adviser Stephen Miller, urging the EEOC to investigate Nike and other corporations over DEI policies.
  • The EEOC’s focus includes public commitments by Nike to raise racial and ethnic minority workforce representation to 35% by 2025, which Lucas warns may cross legal lines if it leads to race-based decisions.
  • Nike, like many U.S. companies, made public commitments to increase diversity after the 2020 racial justice protests, emphasizing these were goals, not quotas, and intended to address hiring bias.
  • Under Title VII of the Civil Rights Act, race cannot be used as a criterion for employment decisions; the EEOC is examining whether DEI efforts at Nike pressured managers into race-based practices.

What they’re saying: Nike maintains that its programs comply with all applicable laws and that it takes allegations of discrimination seriously.

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