Over the past year, the U.S. Equal Employment Opportunity Commission (“EEOC” or “Commission”) has intensified its focus on identifying and addressing unlawful discrimination stemming from Diversity, Equity, and Inclusion (“DEI”) initiatives. We have previously reported on the EEOC’s crackdown on corporate DEI initiatives here.
As the Trump Administration enters its second year, the EEOC’s skepticism and scrutiny of employer DEI policies remains high. Recently, EEOC Chairwoman Andrea Lucas (“Lucas”) sent a letter to Fortune 500 companies re-emphasizing the Commission’s position: Workplace programs that discriminate in the name of DEI violate Title VII. In response, former EEOC officials wrote to those same businesses, criticizing Lucas’s letter and stating that a retreat from DEI initiatives may actually create more risk for employers. These mixed messages from current and former EEOC officials have left some businesses understandably confused and seeking guidance.
EEOC’s March 2025 DEI Guidance
Last spring, as we previously reported, the EEOC, in conjunction with the Department of Justice (“DOJ”), published two “technical assistance” documents signaling the government’s intent to examine whether employer DEI policies run afoul of Title VII.
The first document, “What You Should Know About DEI-Related Discrimination at Work,” is a broad, comprehensive overview for employees regarding DEI policies—including whether the implementation and impact of such policies is discriminatory. For example, the guidance notes that “limiting, segregating, or classifying” workers in connection with DEI may violate the law. Examples of unlawful conduct, according to the EEOC, might include limiting who can join employee resource or affinity groups. The document also states that employers may not use a perceived “need for diversity” to take employment actions based on protected characteristics—such as race.
The second document, “What To Do If You Experience Discrimination Related to DEI at Work,” helps employees identify potential DEI-based discrimination and outlines steps for addressing it. The guidance includes links directing employees to information on filing deadlines, nearby EEOC offices, and the process for filing a Charge of Discrimination with the EEOC.
EEOC Affirms DEI Stance in Letter to Top Employers
On February 26, 2026, Chairwoman Lucas sent a letter to the CEO, General Counsel, and Board Chairman of every Fortune 500 company. In the letter, Lucas reminded business leaders of their Title VII obligations in the specific context of DEI initiatives, recapped the EEOC’s DEI-related actions under the Trump Administration, and underscored the Commission’s desire to end unlawful DEI programs.
According to Lucas, the letter was a “reminder of the importance of [employers’] non-discrimination obligations.” Lucas continued that, in recent years, “bedrock” American principles—such as inherent equality and an employees’ right to be treated as an individual, rather than as a member of a class—have been under attack. In that vein, Lucas noted “[t]he only lawful way to stop discrimination on the basis of race or sex, is to stop discriminating on the basis of race or sex.”
Lucas continued by saying, under her leadership, the Commission has undertaken “exhaustive efforts” to “restore evenhanded enforcement of employment civil rights laws” and has spent the past year advancing President Trump’s “pledge to restore dignity to the American worker.”
Ultimately, Lucas’s letter underscores the Commission—and the Trump Administration’s—intent to heavily scrutinize corporate DEI policies.
Former EEOC Officials Write Letter Encouraging Employers to Maintain DEI Practices
On March 4, 2026, a group of former EEOC officials (the “EEO Leaders”) published an open letter to the Fortune 500 in response to Lucas’s letter. The EEO Leaders include six former Democratic-appointed Commission members and former bipartisan EEOC staff. The EEO Leaders’ letter expressed concern “that recent efforts by the EEOC may discourage [employers] from engaging in lawful efforts to promote diversity, equity, and inclusion.”
The response letter also suggested that retreating from DEI efforts could make companies more vulnerable to discrimination charges and lawsuits. The EEO Leaders further argued that withdrawing from “practices that advance equal opportunity is not the prudent or safe choice—it is an unnecessary risk.”
The EEO Leaders’ letter closed by advising employers that “the law has not changed”—and openly questioned the accuracy of the EEOC’s technical assistance documents published last spring and discussed above. According to the EEO Leaders, the documents do not “provide a full legal picture and warrant[] scrutiny.”
Key Takeaway for Employers
The EEO Leaders’ letter directly conflicts with both Lucas’s public comments and the Commission’s current stance on workplace DEI policies. Given the frequently shifting winds of American politics, employers may be justifiably uncertain about both short- and long-term best practices.
For now, employers should work with experienced employment counsel to analyze any existing or planned policies and initiatives (whether labeled “DEI” or otherwise) to ensure equal treatment of applicants and employees, regardless of race, gender, or other protected characteristics. While the position expressed by the EEO Leaders may foreshadow future challenges to EEOC policies, businesses must take the current EEOC at its word regarding its priorities and enforcement initiatives.
Employers seeking more information may contact Sheppard’s Labor and Employment team for additional insights and strategies.