By Joanna Colosimo
Blog Overview:
The Department of Justice (DOJ) has sent a number of civil investigative demands (CIDs) to private employers asking for information about their respective diversity, equity, and inclusion (DEI) programs. Employers should take a steps to prepare for closer scrutiny of their DEI and pay equity efforts.
DOJ’s DEI Investigations Are Escalating—Here’s What Employers Need to Know
The U.S. Department of Justice (DOJ) has sent a series of civil investigative demands (CIDs) targeting employers’ diversity, equity, and inclusion (DEI) initiatives as part of enforcement efforts under the agency’s new Civil Rights Fraud Initiative. The Civil Rights Fraud Initiative, which is part of a broader enforcement strategy under Executive Order 14173, aims to ensure that federal funds are not used in ways that knowingly violate civil rights laws.
What are CIDs and What Employers Should Do Now
CIDs are administrative subpoenas that allow the government to request information from private organizations without court approval. They can precede formal investigations under the False Claims Act, which carries serious consequences including treble damages, per-claim penalties, reputational harm, and even debarment from future federal contracts. Organizations that receive a CID will likely face a high level of scrutiny on DEI-related programs.
In the wake of this new enforcement activity, employers should consider taking several actions to help ensure their DEI programs are legal regardless of whether they have received a CID, including:
- Audit DEI programs to ensure initiatives are legally sound and aligned with Title VII of the Civil Rights Act of 1964 (Title VII). Avoid any practices that could be interpreted as preferential treatment or quotas based on protected characteristics.
- Review pay equity processes so inquiries regarding how compensation is assessed and adjusted to achieve internal equity can be responded to confidently. This includes methodology, variables used, data sources, and decision-making frameworks.
- Document the process by keeping clear records of how DEI and pay equity decisions are made including the logic and variables used in any analytics or artificial intelligence tools.
- Stay informed by keeping tabs on DOJ guidance, Equal Employment Opportunity Commission (EEOC) updates, and state-level developments. For example, recent technical assistance documents from the EEOC and DOJ clarify what constitutes “unlawful DEI-related discrimination” under Title VII.
Critically, organizations that receive a CID should coordinate with legal counsel immediately. These requests often require privileged analysis and strategic response planning.
Final Thoughts
Thoughtful approaches to DEI-, compliance-, and pay-related work are necessary to reduce legal risk. Organizations that have not reviewed their DEI and compensation strategies recently should consider doing so soon.
DCI will continue monitoring and provide updates as necessary.
