Released: July 30, 2025
The U.S. Department of Justice (DOJ) has issued updated guidance on how diversity, equity, and inclusion (DEI) initiatives may intersect with federal anti-discrimination laws—particularly for organizations that receive federal funding.
The DOJ emphasizes that recipients of federal funds must comply with all applicable anti-discrimination laws, regardless of a program’s stated intentions or labels. Programs that consider protected characteristics in decision-making, even indirectly, may violate federal law and risk loss of funding.
The guidance includes examples of potentially unlawful practices and urges organizations to focus on inclusive access and objective, skills-based decision-making.
DOJ Best Practice Recommendations
To help entities minimize legal risks, the DOJ outlines the following best practices:
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Ensure equal access to all workplace programs, activities, and resources.
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Base candidate selection strictly on measurable skills and qualifications—avoid using indirect indicators like socioeconomic background, first-generation status, or geographic diversity.
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Remove criteria tied to demographic characteristics.
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Maintain documentation showing that decisions are based on legitimate, nondiscriminatory reasons.
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Evaluate neutral policies for unintended impacts that may act as proxies for protected characteristics.
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Avoid diversity quotas and instead focus on neutral, performance-based metrics.
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Open all training programs to every employee, and avoid requiring participants to endorse specific ideological views or disclose personal information related to identity or privilege.
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Include nondiscrimination clauses in contracts and ensure that subrecipients of federal funds adhere to these requirements.
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Establish anti-retaliation procedures and provide safe, well-publicized channels for reporting concerns. Ensure these are reflected in employee handbooks and program materials.
Key Takeaways
Employers receiving federal funds should conduct a thorough review of their policies and DEI initiatives to ensure alignment with federal anti-discrimination requirements. Programs that fail to comply may result in enforcement actions or the withdrawal of federal support. Our DC Employment attorneys are here to continue helping maneuver through the new directives.