The Equal Employment Opportunity Commission, together with the Department of Justice, recently issued new guidance that significantly reshapes the legal landscape for workplace diversity, equity and inclusion programs.

This comes on the heels of a series of executive orders issued by President Trump that direct federal agencies to eliminate what the administration characterizes as “illegal DEI” practices.

For employers — especially those with formal DEI programs — this development creates new legal exposure, murky compliance territory and growing uncertainty around what is now permissible. Below is a practical breakdown of what’s changed, what remains unclear and what senior leadership should consider doing now.

On March 19, 2025, the EEOC and DOJ issued two technical assistance documents meant to clarify how Title VII of the Civil Rights Act applies to DEI programs. While the documents reflect long-standing principles of anti-discrimination law, they also take a narrower view of what DEI initiatives are legally permissible.

Importantly, these documents are informal guidance and not legally binding, but they reflect how the agencies intend to interpret and enforce the law under the current administration.

The guidance

The EEOC’s guidance reaffirms that Title VII prohibits employment decisions based — in whole or in part — on protected characteristics such as race, sex, religion or national origin. The guidance also emphasizes that protections apply equally to majority and minority groups.

The agency said DEI policies, programs or practices may be unlawful under Title VII if they involve “an employment action motivated — in whole or in part — by an employee’s race, sex, or another protected characteristic.”

Based on various legal interpretations of the guidance, some of the most significant changes include:

No exceptions for diversity goals — The EEOC states in its guidance that there is no “diversity interest” exception under Title VII. Even if a DEI program is aimed at increasing representation or equity, it cannot involve employment actions motivated by race, sex or other protected characteristics.

Affinity and resource group access must be open to all — Employers cannot restrict participation in affinity groups based on race, sex or similar traits. Limiting access — even with the goal of creating safe spaces or support systems — may now violate Title VII.

Segregation in training and development is risky — Organizing DEI training or programs that separate participants by race, gender or other protected categories is likely unlawful.

Quotas and workforce balancing remain unlawful — The EEOC reiterated that hiring or promotion quotas, or any form of “balancing” the workforce based on demographic traits, is discriminatory under Title VII.

No such thing as “reverse discrimination” — The EEOC emphasized that Title VII protects all employees, regardless of group status. It does not require a higher burden of proof for claims from majority-group employees.

Hostile work environment claims from DEI training — DEI training that is viewed as offensive or discriminatory by employees could give rise to hostile work environment claims. This includes situations where training materials stereotype or marginalize employees based on race or gender.

Retaliation protections apply — Employees who object to perceived unlawful DEI practices, participate in investigations or file EEOC charges are protected from retaliation under Title VII.

While the guidance outlines several potentially unlawful DEI practices, it does not provide a definitive list of what is permissible. This ambiguity puts employers in a difficult position because the line between compliant and noncompliant practices is often hard to draw.

Steps to take

Given the legal uncertainty and heightened scrutiny, the law firm of Fisher Phillips recommends that companies consider the following actions:

• Engage legal counsel to review DEI-related policies, training materials and communications. Focus on areas such as hiring, promotion, compensation, training, mentorship, internships and affinity group policies.
• Shift from targeted DEI initiatives based on protected characteristics to programs that promote skill-building, access and inclusion for all employees. Emphasize transparent, merit-based advancement and development opportunities.
• Where possible, position DEI efforts to emphasize workplace culture, professional development and inclusive merit-based access to opportunities.
• Update your training to reflect the latest EEOC guidance. Ensure that decision-makers understand that DEI efforts cannot involve preferences or separate treatment based on protected traits.

Bottom line

The new guidance is a major shift in how the EEOC will approach regulating workplace discrimination. For employers, this means a narrower path for legally compliant programs and greater exposure to discrimination claims from any employee group.

If you have a workplace DEI program, it’s imperative that you revisit it and adjust it accordingly.