As we covered in a prior client alert, the U.S. Department of Justice (“DOJ”) issued its “Guidance for Recipients of Federal Funding Regarding Unlawful Discrimination” on July 29, 2025. Although the memo is directed primarily at federal funding recipients, all employers subject to federal civil rights laws should carefully assess their DEI programs and policies in light of DOJ’s current approach. Below we provide three key areas from the memo, as well as an initial compliance checklist for employers.
The DOJ memorandum is advisory, clarifying how existing federal civil rights laws – including Title VII, Title VI, Title IX, the Equal Protection Clause, and the False Claims Act – apply to diversity, equity, and inclusion (DEI) initiatives. While the guidance does not prohibit all diversity programs, it ties the lawfulness of DEI efforts to program context, design, and implementation.
Below are examples illustrating how the principles in the DOJ memo apply to three workplace programs:
Diverse-Slate Hiring Requirements: The DOJ memo cautions that hiring procedures mandating a minimum number of candidates from specific racial or other protected groups may be unlawful if they function as quotas. Instead, employers should train recruiters and hiring panels to assess candidate skills and experience, broadening talent pools without relying on protected characteristics.
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