Scrutiny Deepens Around DEI Initiatives as DOJ Expands Investigations

According to an article by Christopher Wilkinson and Kaneem Antar Thornton of Perkins Coie, the Department of Justice (DOJ) has become increasingly active in scrutinizing public entities’ DEI initiatives (diversity, equity, and inclusion), which may soon extend to private employers now that the Equal Employment Opportunity Commission (EEOC) has regained a quorum. 

The DOJ’s recent investigations into the city of Austin, the California Environmental Protection Agency, and other public bodies reveal a clear shift toward examining whether equity-based practices constitute discrimination under Title VII of the Civil Rights Act.

On September 18, 2025, the DOJ informed Austin officials that it was investigating whether the city’s DEI initiatives discriminated based on race, sex, color, or national origin. Similar investigations were launched into California’s environmental agency for applying a “racial equity lens” to workforce planning, and into the hiring practices of Chicago and Des Moines, following public remarks and goals focused on racial diversity. These actions suggest that public expressions celebrating diverse hiring practices or utilizing race-conscious frameworks may draw federal scrutiny.

Wilkinson and Thornton note that while the DOJ has equated certain equity-focused approaches with potential bias, courts have generally found that such principles and training do not violate Title VII. However, inconsistencies persist. For example, the DOJ criticized Austin’s collection of demographic data but also advised federal fund recipients to analyze potential “proxy discrimination,” which would seemingly require such data.

For risk and compliance leaders, these developments underscore the need for caution when designing or publicizing DEI initiatives. Employers should verify that all diversity-related initiatives align with established legal precedent and maintain documentation that demonstrates neutral, merit-based decision-making pending further court guidance.