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DEI Rollback Leaves Employers—Especially Banks—Navigating Legal Risk and Uncertainty

Core civil-rights laws still bind employers despite the rollback of executive DEI mandates.

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Overview

  • President Trump’s January order rescinded EO 11246, and the Labor Department instructed OFCCP to abandon pending enforcement under that authority.
  • EEOC and DOJ issued a March technical assistance document on DEI-related discrimination, yet employers report limited clarity on what constitutes unlawful practices.
  • A coalition of state attorneys general led by Texas sought information from six major financial institutions over alleged quota-driven hiring and broader DEI and ESG practices.
  • Banks, treated as federal contractors due to FDIC backing, retain obligations under Title VII, VEVRAA and Section 503 even as affirmative-action requirements tied to EO 11246 fall away.
  • Legal analysts warn that wholesale cuts to DEI safeguards can heighten exposure to employee-filed EEOC charges and lawsuits, which far outnumber government-initiated cases.