The dissolution of DEI policies may have begun in 2025, but the EEOC’s plans to crack down on DEI in 2026 show us that things are only just heating up. Diversity, Equity, and Inclusion policies, once revered as a sign that differentiated a good employer from a great one, have now become the very reason why some businesses may risk getting sidelined.
Andrea Lucas, the Chair of the Equal Employment Opportunity Commission, recently told Reuters that businesses that factored in race, sex, or other similar protected characteristics in their employment decisions under Title VII of the Civil Rights Act could face severe consequences in the coming year. Pursuing DEI policies comes with legal risks that businesses will need to re-evaluate in order to avoid any allegations of resistance or non-compliance.
The EEOC is renewing efforts to scale up its DEI crackdown, and businesses need to prepare for the scrutiny that might accompany it. (Image: Freepik)
The EEOC’s DEI Crackdown Gains Steam as the Employment Landscape Evolves
DEI policies are now more divisive than ever before. Some employees and customers remain partial to businesses that prioritize these diversity policies, boycotting those that have dropped their investments in the area this year. On the other hand, many parties, including the government, have celebrated businesses that have stepped away from any form of DEI tracking or investment in 2025.
The rise of “reverse” discrimination lawsuits has also showcased the legal risks that come with DEI goals, and these are expected to escalate in 2026. As part of the EEOC’s DEI crackdown, Lucas confirmed that inquiries were being made into organizations that still had diversity and equity policies in place, or had hiring, promotion, or marketing initiatives in relation to these policies. No businesses were openly named as currently under review, but we can expect to learn more in the coming year.
“Chair Lucas and the Trump Administration are ensuring all Americans are treated fairly by rigorously enforcing civil rights laws, ending illegal DEI-motivated race and sex discrimination, and upholding the Constitution,” a White House spokesperson told Reuters. Lucas similarly told the renowned news organization that, “My goal is to shift to a conservative view of civil rights.”
What Will Corporate America’s DEI Reckoning Look Like in 2026?
The EEOC’s anti-DEI enforcement policy for 2026 aims to put an end to all forms of race discrimination, and aspects like race or gender-based groups within the workplace may also be targeted. This means that Employee Resource Groups, which serve as meeting grounds and safe spaces for employees with shared backgrounds, may also be restricted within the workplace.
Other considerations within the EEOC’s approach may be of note to workplaces as well. Issues of antisemitism and forced COVID-19 vaccine mandates will also get some attention. The agency will also take a closer look at “national origin discrimination,” protecting all American workers. The EEOC’s new stance on DEI practices reflects the current administration’s approach to the matter and falls in line with Executive Orders previously released by the president on “ending radical and wasteful government DEI programs and preferencing.”
In the aftermath of the executive orders, many companies rebranded their DEI policies into cultural mandates that focused on “inclusivity” or “belongingness” instead. These programs may also be targeted. The agency is said to be looking into web-achieve searches to review companies and their approaches to DEI, with Lucas telling Reuters that “It doesn’t matter if you call that DEI or belonging or ‘EO’ or anything: If it functions like that, it’s illegal.“
Legal Risks Await Those Who Pursue DEI Practices
The cultural shift away from DEI has been a turning point in the history of the country, and it’s clear that a large number of businesses have migrated away from any association with practices they had thus far set on a pedestal. Some companies that eliminated all signs of DEI, such as Target and Amazon, have made attempts to shift focus towards inclusion instead, while more surprising candidates like Mattel also ceased all of its DEI reporting. Shareholders at businesses like Apple and Costco have maintained their commitment to their DEI policies, but with the threat of increased scrutiny and litigation, this could change next year.
The corporate risk associated with DEI investments in 2026 extends beyond the EEOC to include the recent surge in reverse discrimination lawsuits. Businesses are now left in a precarious position and must choose their policies and practices carefully. Those that relied on ERGs and other culture-building projects to support employees will likely have to look for other strategies to support workers and build a community at work.
Employers Need to Gear Up for The EEOC’s Anti-DEI Enforcement Plan for 2026
Many predict that the EEOC will face some pushback in the enforcement of these regulations. A group of former EEOC staffers penned an open letter backing up the need for DEI in the workplace, and unions and other civil rights advocates will continue to oppose any changes to existing practices.
That said, the EEOC is unlikely to step back from its DEI crackdown, and employers that want to stay in the clear will have to support HR in exploring alternatives to avoid drawing any scrutiny from the Equal Employment Opportunity Commission next year.
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