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National Institute for Workers' Rights

National Institute for Workers' Rights

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        Concord, CA 94520

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Corporate Accountability

NIWR and NELA Warn Corporations Of Increased Liability Risk In Rolling Back Diversity, Equity And Inclusion Programs

April 8, 2025
By NIWR

Letters put Target, Meta, and Tractor Supply Co. on notice for liability in discrimination cases

For Immediate Release
Contact: Andrea Hansen

Concord, Calif. – April 7, 2025 – Today, the National Employment Lawyers Association (NELA) and the National Institute for Workers’ Rights (NIWR) issued formal warnings to Target, Meta and Tractor Supply Co., stating that eliminating diversity, equity and inclusion initiatives could expose companies to heightened legal liability for discrimination litigation. The letters argue that rolling back these initiatives would open the door for bias against women, people of color and other underrepresented groups, and may be used as evidence against employers in discrimination litigation.

Diversity, equity and inclusion programs emerged as a means to ensure employers comply with the Civil Rights Act of 1964, the Age Discrimination in Employment Act, Title I of the Americans with Disabilities Act, and Sections 501 and 505 of the Rehabilitation Act.

“Diversity, equity and inclusion initiatives don’t just promote fairness, they help companies comply with civil rights laws,” said NIWR Director Jason Solomon. “Despite President Trump’s rhetoric around ‘illegal DEI,’ there are very real risks for companies who choose to pull back such efforts. We look forward to meeting with the general counsels of Target, Meta, Tractor Supply and any other interested companies who may be seeking a way to maintain their company’s commitment to treating each person with dignity and respect, no matter their race, gender or zip code, while steering clear of the government’s attention.”

Companies have implemented such efforts to help ensure that diverse candidates are fairly considered for promotions and to help address past discriminatory actions in a company’s history. For example, in 2013 and 2018, Target entered into major settlements for discrimination against older workers and Black and Latino job candidates, respectively. Then in 2020, Target announced their Racial Equity Action and Change (REACH) initiative including a “focus on development, career progression, and advancement of Black team members.”

With Target’s recent announcement that it is ending the REACH initiative, the company risks returning to discriminatory practices in the future.

The letters also outline some of the circumstances that may lead to increased liability for companies when faced with discrimination suits from workers. For example, shuttering programs centered on equal opportunity will increase liability risk because biases against women, people of color and others will persist, and the programs designed to counteract those biases will be gone. In backing away from such programs, executives may convey views, publicly or privately, that reflect discriminatory bias and can be used in lawsuits against those companies.

One recent example provided was comments made by Meta CEO Mark Zuckerberg during a podcast interview in which he indicated that he thought companies had become “culturally neutered” and needed more “masculine energy.” NELA and NIWR’s letter to Meta observes that “Zuckerberg’s comments likely increased the severance amounts paid to women in your recent round of layoffs, the number of women who opted to sue instead, or both.”

Letter to Target Corporation

Letter to Meta Platforms, Inc.

Letter to Tractor Supply Company

##

About the National Employment Lawyers Association (NELA)

The National Employment Lawyers Association (NELA) is the largest professional membership organization in the country composed of lawyers who represent workers in employment, labor, and civil rights disputes. Founded in 1985, NELA’s mission is to empower workers’ rights attorneys through legal training, promoting a fair judiciary, and advocating for laws and policies that level the playing field for workers.

About the National Institute for Workers’ Rights (NIWR)

Founded in 2008, the National Institute for Workers’ Rights (NIWR) is a nonprofit advocacy organization dedicated to building worker power among those who are not represented by a union. Its mission is to advance workers’ rights through research, thought leadership, and education for policymakers, advocates, workers, and the public through its three pillars of action: economic dignity, workplace justice, and the future of worker advocacy. The Institute’s goals are to ensure that employers have a greater incentive to follow the law than to violate their workers’ rights, and that when workers are harmed at work, they will receive justice.

Corporate Accountability, News DEI, feature two, news

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