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Anti-DEI Lawsuits Threaten Nonprofits, Philanthropies

Hardly a day goes by without news coverage of the perils companies and organizations face in the implementation of DEI programs.  For instance, recently the Nonprofit Quarterly noted that “nonprofit and philanthropic sectors are at growing risk for lawsuits challenging DEI . . . measures, fellowship and intern practices, giving and grantmaking procedures, and even the provision of basic services.”  These threats stem from a “a new wave of litigation . . . seeking to challenge virtually any consideration of race in myriad institutional practices and decisions.”  Indeed, the article goes on to note that “experts say” that these various test cases “could be the tip of an anti-DEI legal iceberg for nonprofits and philanthropic institutions.”

The Nonprofit Quarterly article underscores the sorts of considerations that companies and nonprofits need to take in trying to foster respect for the dignity and equality of their workers and promote solidarity among their employees while adhering to the law.  Read more here.

ADVANTAGE DES - CONOR DUGAN

Conor Dugan is a partner with SouthBank Legal in its Grand Rapids, Michigan office.  Conor has a national litigation and counseling practice.  Before entering private practice, he spent nearly seven years with the Department of Justice in its Civil Rights Division. Conor has led Title IX Investigations, advised on the applicability and ramifications of FERPA, Title IX, and federal and state discrimination law, and offered crisis counseling to educational institutions.

DEI Lawsuit Ended by Change of Policy 
to Comport with Law

It seems every profession and industry face challenges in working to promote their employees’ and society’s concerns about dignity and equality while following the law.  This includes those advising companies on how to follow the law.  A good example of this comes from an article discussing the dismissal of a lawsuit against the white-shoe law firm Perkins Coie.  Perkins Coie announced a diversity fellowship program that was limited to students of color, those who identified as LGBTQ+, or those with disabilities.  The American Alliance for Equal Rights (the “Alliance”) brought suit against Perkins Coie.  After the lawsuit was filed, Perkins Coie announced that the fellowship would be open to all law students regardless of race and the Alliance dropped its lawsuit.

The legal dispute highlights the hazards in the DEI-space.  Despite good intentions, a company or law firm might walk itself into illegality.

ADVANTAGE DES - CONOR DUGAN

Conor Dugan is a partner with SouthBank Legal in its Grand Rapids, Michigan office.  Conor has a national litigation and counseling practice.  Before entering private practice, he spent nearly seven years with the Department of Justice in its Civil Rights Division. Conor has led Title IX Investigations, advised on the applicability and ramifications of FERPA, Title IX, and federal and state discrimination law, and offered crisis counseling to educational institutions.

Avoiding Potential Legal Pitfalls in DEI Programs

Businesses’ efforts to foster dignity and equality among their workforce and, more generally, in the culture are landing on the radar of risk management specialists.  Indeed, an article from Risk Management Magazine this past fall lays out the legal risks companies face with DEI programs and offers tips on mitigating those risks.  Among the tips provided are the avoidance of “specific quotas, stated preferences or providing a ‘plus’ factor based on protected characteristics” and hiring and promoting “based on consistent and legitimate job-related criteria.”

The article makes clear that business and organizations need to be on alert for the legal traps they fall into if they are not careful with how they seek to promote the dignity and equality of their workers.  Even well-intentioned programs could land a company in legal hot water.

ADVANTAGE DES - CONOR DUGAN

Conor Dugan is a partner with SouthBank Legal in its Grand Rapids, Michigan office.  Conor has a national litigation and counseling practice.  Before entering private practice, he spent nearly seven years with the Department of Justice in its Civil Rights Division. Conor has led Title IX Investigations, advised on the applicability and ramifications of FERPA, Title IX, and federal and state discrimination law, and offered crisis counseling to educational institutions.
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