GOP AGs caution top 100 firms post affirmative action verdict.

A Warning to Corporations: Legal Consequences for Race-Based Employment Preferences

A group of more than a dozen Republican attorneys general has taken a stand against race-based employment preferences, sending a powerful letter to the country’s largest corporations. Led by Tennessee Attorney General Jonathan Skrmetti and Kansas Attorney General Kris Kobach, the letter was sent to Fortune 100 companies, urging them to reconsider their hiring and promotion practices.

The attorneys general emphasized the recent ruling in Students for Fair Admissions v. President and Fellows of Harvard College, which effectively ended affirmative action in college admissions. This landmark decision served as the foundation for their argument against race-based initiatives in the corporate world.

Discrimination Laws Apply, Regardless of Corporate Diversity Initiatives

The state officials made it clear that discrimination laws could still apply, even if these practices are framed as part of corporate diversity, equity, and inclusion initiatives. While these initiatives have gained popularity in recent years, the attorneys general argue that some efforts to increase minority representation in the workplace may inadvertently lead to discriminatory hiring and promotion decisions based on race.

“Sadly, racial discrimination in employment and contracting is all too common among Fortune 100 companies and other large businesses. In an inversion of the odious discriminatory practices of the distant past, today’s major companies adopt explicitly race-based initiatives which are similarly illegal,” the letter reads.

The attorneys general further highlight specific discriminatory practices, such as racial quotas and preferences in hiring, recruiting, retention, promotion, and advancement.

Extending the Precedent: From Colleges to Corporations

While the Supreme Court ruling focused on affirmative action in college admissions, the attorneys general extrapolated its precedent to the corporations in question. They argue that the recent decision should serve as a warning to all employers and contractors, making it clear that racial quotas and race-based preferences in employment and contracting practices are illegal.

This effort against race-based employment preferences is part of a broader push from GOP state treasurers and attorneys general to combat corporate environmental, social, and governance practices. It aligns with previous actions taken by state treasurers, such as divesting from money manager BlackRock over its climate change mitigation policies.

As the debate surrounding diversity, equity, and inclusion continues, the legal consequences for race-based employment preferences are becoming increasingly apparent. It remains to be seen how corporations will respond to this warning from the attorneys general.

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