DEI Resurges As Employers Adapt Post-Supreme Court Ruling, Experts Say

Workplace diversity, equity, and inclusion (DEI) initiatives faced a significant setback after the US Supreme Court’s ruling on affirmative action in college admissions in 2023.

However, experts now report that employers’ interest in DEI programs is now resurging, according to Law360.

The Initial Impact of the Supreme Court’s Ruling

The conservative-majority Supreme Court declared race-conscious admissions policies at Harvard University and the University of North Carolina unconstitutional. 

Though the ruling targeted higher education, its effects quickly spread to the corporate world. Legal threats led many employers to pull back on their DEI initiatives, causing a decline in demand for DEI consulting services.

“Last year has had an impact on this business, but I’m beginning to see, not a resurgence, but a bottoming out, and some new entrants. We’re beginning to see new clients step up,” Haven Cockerham, CEO of Cockerham & Associates said according to Law 360.

Despite the Supreme Court’s ruling having no direct legal bearing on workplaces, right-wing organizations like The American Alliance for Equal Rights (AAER) and America First Legal (AFL) have leveraged it to challenge DEI initiatives. 

A Renewed but Cautious interest in DEI

Despite these challenges, DEI proponents have seen notable victories. The Eleventh Circuit blocked parts of the Stop WOKE Act, and the Second Circuit set a precedent requiring detailed harm allegations for lawsuits challenging DEI programs.

The Latina-led fintech platform Hello Alice recently announced the dismissal of a lawsuit from America First Legal, which alleged its grants for Black businesses amounted to racial discrimination.

Read: Top Black Execs Say That DEI Efforts Remain Strong Despite Backlash

These wins have encouraged employers to continue their DEI efforts, albeit with more caution. For example, diversity and inclusion consultants are adapting to the new climate by altering their terminology and strategies. 

“While they’re not retreating from DEI by any means, based on what we have observed, they are just approaching it more thoughtfully,” said Lauren J. Hartz of Jenner & Block LLP.

“It is increasingly the case that lawyers are in the room when DEI programs are created, modified or discussed to provide their perspective on this rapidly changing legal, regulatory and political issue.”