What New EEOC Guidance Means for “DEI” Efforts

In the face of rising scrutiny and confusion surrounding diversity, equity, and inclusion (DEI) efforts, we know many companies are navigating uncertainty. When President Trump took office, he issued executive orders banning “illegal DEI,” but didn’t define what that actually was. The orders themselves didn’t change underlying federal employment law, and left many organizations wondering what aspects of their DEI strategies the administration might consider “illegal.”

On March 19, 2025, the Equal Employment Opportunity Commission (EEOC)—the agency tasked with enforcing Title VII of the Civil Rights Act—released new guidance that outlines the types of DEI initiatives it views as potentially unlawful. This guidance provides helpful clarity that in many ways affirms the evolving approach that many organizations are already taking.

The bottom line? While some organizational programs and initiatives may need to evolve, companies can feel confident continuing to cast wide nets for talent that allow them to find the best and most qualified candidates, wherever they may be. They can continue to design fair, objective talent practices that promote more inclusive and merit-based outcomes. And they can continue to cultivate cultures of belonging, where everyone is empowered to do their best work and thrive. 

Below, we’ve outlined some of the key areas called out in the EEOC guidance and what they mean for common organizational programs. As always, the right course of action depends on your unique context—your industry, goals, values, and level of risk tolerance—and should be determined in conjunction with your company’s legal counsel. 

EEOC Update & Implications 

In its guidance, the EEOC explains that unlawful DEI initiatives are those that discriminate against applicants or employees in a variety of aspects of employment. First, they list the obvious things—hiring, firing, promotions, demotions, compensation, benefits, and job duties—then they outline a number of less obvious programs and initiatives they consider to be potentially unlawful:

Next Steps

At Paradigm, we think creating cultures for everyone isn’t just the right thing to do—it’s one of the keys to high-performance teams. While the acronym “DEI” and some of the programs organizations have pursued under this banner are evolving, with the right guidance organizations can feel confident in continuing to build representative teams, fair practices, and inclusive environments.

If you’d like to talk through what this guidance means for your organization, we’d love to connect. We’re here to help you chart a path that’s legally sound, aligned with your values, and designed to create real impact.

March 27, 2025

If you’d like to talk through what this guidance means for your organization, contact us today!