Challenges to DEI Restrictions Cause More Confusion
April 4, 2025
Last week, we wrote about the guidance issued by the EEOC regarding actions or policies that could be considered illegal DEI. (click here to read our post!)
There has been some confusion regarding the guidance issued by the EEOC in its application. These additional factors feed into the uncertainty surrounding DEI practices:
- A federal court issued a limited temporary injunction against the U.S. Department of Labor (“DOL”) attempting to enforce “illegal DEI” measures. A partially federally funded nonprofit focused on supporting women in skilled trades immediately felt the effect of EO 14151 and EO 14173 when a partner canceled its subcontract, citing being in violation of both executive orders. “The Court concludes that the [executive order] is likely a coercive threat…selectively targeting speech regarding DEI, DEIA, and equity based on a belief that such programs are ‘immoral,’ i.e., disfavored by the government.” This injunction is not widespread, it applies to the nonprofit challenging the order and any grantee through which it holds a subcontract. However, the court additionally barred the DOL from enforcing the requirement that grantees certify they don’t operate any DEI-promoting programs—even outside of their grants. This applies nationwide to all DOL grantees.
- Massachusetts attorneys have told Massachusetts Lawyers Weekly they are less concerned about the guidance issued on two counts: 1) the EEOC and the executive orders are unable to override established law and precedent. While the EEOC could seek investigation, which would bring undue costs to employers, it would be unlikely to lead to further legal action. 2) The guidance is much the same as it was before, but with more of a focus on practices during an employee’s term of employment. The EEOC has historically focused on hiring and firing practices.
- The EEOC’s acting chair publicly requested information from 20 law firms regarding their DEI-related employment practices going back to 2015. Andrea Lucas, EEOC head, stated in her letters to the 20 firms that the investigation is based on public statements the firms previously made regarding their diverse hiring practices.
Take Aways
- Seek review of handbooks and company policies to ensure compliance before an investigation could take place.
- If you accept federal funding, do not expand any DEI programs until the guidelines are solidly established between the courts and the administration. Try to avoid a knee jerk reaction of immediately cutting all DEI programs as they may remain legal. Please reach out to The Royal Law Firm to help you navigate this ever-changing terrain.
“An ounce of prevention is worth a pound of cure.” – Benjamin Franklin
If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.
Brandon Calton is now admitted to the United States District Court, Connecticut! The Royal Law Firm is passionate about expanding our reach so that we can better serve our clients and their needs. Brandon is admitted in Massachusetts, the United States District Court of Massachusetts, and the United States District Court of Connecticut.
On May 21, 2025, the U.S. District Court for the Western District of Louisiana struck down a provision in the Equal Employment Opportunity Commission’s (EEOC) final rule under the Pregnant Workers Fairness Act (PWFA), ruling that the agency exceeded its authority by requiring employers to accommodate elective abortions that are not medically necessary. Background Information: In June 2022, the U.S. Supreme Court issued a decision in Dobbs v. Jackson Women’s Health Organization, which overturned Roe v. Wade and eliminated the constitutional right to abortion. Congress passed the Pregnant Workers Fairness Act in December 2022, and it became effective in June 2023. The law requires employers with 15 or more employees to provide reasonable accommodation to qualified applicants or employees who have physical or mental conditions related to pregnancy, childbirth, or related medical conditions, unless doing so would cause significant difficulty or expense for the employer. In April 2024, The EEOC issued its final interpretation of the PWFA including abortion in the definition of “pregnancy, childbirth, or other related medical conditions” thereby requiring employers to provide accommodations related to abortion. In May 2024, the states of Mississippi and Louisiana sued the EEOC, arguing that the interpretation conflicted with the U.S. Supreme Court’s Dobbs decision and their respective state laws on abortion. In June 2024, Judge Joseph found that the EEOC exceeded its authority and issued a preliminary injunction postponing the effective date of the interpretation to provide accommodation for elective abortions until final judgment was entered in this matter. The final judgment was entered on May 21, 2025, that remanded the matter to the EEOC to revise the final rule and all related implementing regulations and guidances. Employer Takeaways: While employers are no longer (as of now) REQUIRED to provide accommodation for elective abortions, the remainder of the PWFA remains in full effect The decision to have or not have an abortion remains protected under Title VII The PWFA does not supersede state or local laws providing greater protection for pregnant workers. It is important to stay up to date on state regulations to ensure employers are complying with state laws. While it is still unclear how this ruling will impact employers nationwide, it is still important to continue to stay up to date on ever-changing legislation. If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.
