15 States Offer Tips On How DEI/DEIA Initiatives Can REDUCE Legal Risk for Your Business

The federal government may be cracking down on what it deems “illegal DEI,” but a new memo from the Attorneys General of 15 states clarifies what most of us already knew: businesses can legally implement diversity, equity, inclusion, and accessibility initiatives. Moreover, these programs can help companies comply with civil rights laws and reduce the risk of discrimination claims. Here’s what employers need to know.

How DEI Can Protect Your Business

Preventing Discrimination Before It Starts
DEI programs help companies identify and fix policies that might unintentionally discriminate against employees or job applicants. They also offer training on topics like unconscious bias, inclusive leadership, and disability awareness, which helps ensure that managers and employees follow non-discrimination laws. Taking these steps proactively can prevent costly legal claims.

Clear Reporting Protocols
DEI/DEIA initiatives typically include clear protocols for reporting discrimination or harassment. These protocols ensure that unlawful conduct is promptly identified, reported, and addressed when it occurs. By having effective reporting mechanisms in place, companies can quickly respond to and resolve issues, reducing the potential for prolonged discriminatory practices and subsequent litigation.

Building a Positive Workplace Culture
A well-run DEI program fosters a workplace where all employees feel valued and respected. This helps prevent discrimination, improves morale, and encourages teamwork. A positive culture reduces the risk of legal claims and makes employees more engaged and productive.

Regular Review and Updates
Regular assessment and monitoring of DEI/DEIA policies and practices help companies ensure their effectiveness in preventing discrimination and promoting an inclusive environment. This ongoing evaluation allows companies to make necessary adjustments and improvements, further reducing the risk of legal claims related to discriminatory practices.

DEI vs. Affirmative Action: What’s the Difference?

The memo makes it clear: DEI is not the same as affirmative action. While affirmative action sometimes involves giving preference to certain groups in hiring or promotions—an approach that can lead to legal challenges—DEI focuses on ensuring hiring and promotion processes are fair for everyone. The goal is to recruit and retain the best candidates, emphasizing merit while creating an inclusive workplace.

Best Practices for Employers

To implement DEI effectively, the memo suggests these strategies:

• Recruitment & Hiring: Use broad outreach, panel interviews, and standardized evaluation criteria. Make sure hiring processes are accessible to all.
• Employee Development & Retention: Offer equal access to training, mentorship, and career growth opportunities. Support Employee Resource Groups (ERGs) and train leaders on inclusion.
• Ongoing Evaluation: Regularly assess the success of DEI policies, create clear reporting systems, and integrate DEI principles into daily operations.

By following these best practices, companies can create a more inclusive workplace while minimizing legal risks. The Attorneys General emphasize that well-designed DEI initiatives comply with the law and contribute to business success by fostering a more engaged and productive workforce.