Business is booming for DEI lawyers as corporate America asks ‘what’s legal?’

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Some companies are cutting back on DEI initiativeswhile others are disbanding them altogether. Many more are hurriedlyreconfiguring their policies, striving to avoid lawsuits fromconservative activists as they attack diversity programs.

By Simone Foxman, Bloomberg NewsCEO and Portfolio Manager Pershing Square Capital Management L.P. William Ackman speaks at The New York Times DealBook Conference at Jazz at Lincoln Center on Nov. 10, 2016, in New York City.

Take Kenji Yoshino, a constitutional law professor at New York University and one of the country’s leading experts on DEI. He says inquiries from Fortune 500 companies have surged since June, when the Supreme Court banned universities from using race as a factor in admissions and opened the gateway for legal challenges to corporate diversity hiring practices.

“Lots of clients are wanting to do audits, review all DEI efforts, board diversity, socially conscious investing to assess risk and figure out what — if any — changes they want to make,” he said. “There is a never ending tide of stuff.” “Right now, you need a lot of creativity and tolerance for risk,” Schwartz said. “All of the banks I have been talking to, their view is we are not going to overreact and abandon our programs. ‘We don’t want this place to look like it did in 1950. We want to do it in a lawful way but we’re not going to run away from it’.”

Companies have been allowed to recognize race as part of their employment selection criteria under rules governed by the Equal Employment Opportunity Commission . And the EEOC said that the court’s June decision “does not address employer efforts to foster diverse and inclusive workforces or to engage the talents of all qualified workers, regardless of their background.”

 

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