The attorneys general of sixteen states recently released guidance explaining how diversity, equity, and inclusion (DEI) programs in the private sector can remain viable and legal. This guidance came shortly after President Donald Trump issued two executive orders targeting “unlawful DEI” programs in the federal government, federal contractors, and federal fund recipients, and directed the U.S. attorney general to investigate “unlawful DEI” programs in the private sector.

Quick Hits

• The attorneys general of sixteen states signaled to private employers that their DEI programs can remain legal, if designed and implemented correctly under applicable laws.
• The guidance came in response to President Trump’s executive orders to stop DEI “mandates, policies, programs, preferences, and activities” in the federal government and “unlawful DEI” programs by federal contractors and federal money recipients.
• The guidance reiterates that racial and sex-based quotas and unlawful preferences in hiring and promotions have been illegal for decades under Title VII of the Civil Rights Act of 1964.

On February 13, 2025, the attorneys general of Arizona, California, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Oregon, Rhode Island, and Vermont issued guidance stating DEI programs are still legal when structured and implemented properly.

State laws prohibiting employment discrimination based on race or sex vary in scope....

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