This week, we’re focusing on the employer implications of new guidance from U.S. Attorney General Pam Bondi and the U.S. Department of Justice (DOJ) on unlawful diversity, equity, and inclusion (DEI) practices.

New DOJ Memo Warns Employers: Rethink DEI Programs Now

New guidance from Attorney General Bondi urges federal funding recipients to reassess DEI programs to ensure compliance with anti-discrimination laws. This memo highlights actions deemed “unlawful DEI,” including race-based scholarships, preferential hiring, and misapplied “neutral” criteria.

What This Means for Employers:

  • Federal consequences: Noncompliance risks include funding revocation or False Claims Act liability.
  • Beyond federal funding: Private employers should also review DEI policies for legal risks.
  • Focused best practices: Ensure inclusive environments, prioritize skills and qualifications, and eliminate demographic-driven criteria.

Epstein Becker Green’s Lauri Rasnick unpacks these developments in this week’s Employment Law This Week®.

Other Highlights

“Illegal DEI”: New DOJ Guidance and Its Implications for All Employers
Insights
Frank C. Morris, Jr.; Susan Gross Sholinsky 

Training Artificial Intelligence and Employer Liability: Lessons from Schuster v. Scale AI
Workforce Bulletin
Naomi C. Friedman

From Best Practices to Enforcement: Decoding DOJ’s July 29 Anti-Discrimination Guidance
Health Law Advisor
George B. Breen, Daniel C. Fundakowski

Punching In: Trump’s Labor Department Picks Await Senate’s Return
Bloomberg Law Daily Labor Report (subscription required)
Paul DeCamp quoted

About Employment Law This Week

For employers navigating risk, workforce, and the bottom line. Employment Law This Week® delivers the employment and labor developments that matter—without the noise. Part of the Epstein Becker Green Insights Network.

Your Workforce. Our Business.® 
As a trusted leader in U.S. employment law, Epstein Becker Green supports employers from a variety of industries in mitigating risks, safeguarding reputations, and enhancing bottom lines. Learn more about our employment, labor, and workforce management services.

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