A federal court recently dismissed a state’s challenge to an employer’s diversity, equity, and inclusion practices. The court ruled on procedural grounds and did not address the legality of the challenged DEI practices.
In Missouri v. Starbucks Corp., the court found that Missouri lacked standing to bring the case because it did not identify any concrete injury to Missouri residents from Starbucks’ initiatives. The court also held that the Attorney General lacked authority to bring the federal and state claims and that the complaint did not plausibly allege any discriminatory employment action. Missouri has appealed.
Because the court did not reach the merits, employers should not view the ruling as validation of their own DEI initiatives. State attorneys general continue to examine DEI programs that could be considered preferential or exclusionary. Employers should expect continued scrutiny of their hiring, promotion, mentorship, and incentive structures that incorporate demographic considerations.
The Center for Workplace Compliance, our affiliated nonprofit membership association, will discuss these issues at its Workplace Policy Conference on March 18-19. CWC members and eligible non-members also may consider CWC’s DEI Risk Assessment Package as a structured way to assess and mitigate their risk. CWC members can read more here.