The EEOC isn't suing Nike for discrimination—at least not yet. Instead, it has filed a subpoena enforcement action after Nike allegedly refused to fully comply with an investigation that reaches back to 2018. According to the agency, Nike's "DEI-related 2025 Targets" and other initiatives may have resulted in race-based decision-making in hiring, promotions, layoffs, internships, and mentoring and leadership-development programs.
Under EEOC Chair Andrea Lucas, the agency has made one thing unmistakably clear: Title VII is "colorblind." In fact, that's been the state of the law since in enactment in 1964. That means DEI programs are not immune from scrutiny—especially if they involve quotas, race-restricted programs, or employment decisions made even partly because of race.
The agency is asking Nike for information on layoff criteria, race and ethnicity tracking, whether executive compensation was influenced by workforce diversity metrics, and 16 allegedly race-restricted career development programs.
Nike says the subpoena is wildly overbroad, unduly burdensome, and a fishing expedition—and that it has already produced thousands of pages of documents. That procedural fight will play out in court. But zoom out, and the bigger picture is hard to miss.
Nike isn't just being investigated. It’s being showcased. That's the point in targeting Nike—to make an example of a big-name employer to highlight this issue.
Employers with DEI programs or goals: good intentions won't save you. DEI goals, standing alone, are not illegal. Their legality, however, depends on how you implement them. Numerical race-based targets, limiting opportunities by race, or factoring race into promotions, layoffs, or compensation decisions have always lived on thin legal ice. That ice just cracked.
If your DEI strategy includes hard targets tied to race, race-exclusive mentoring or leadership programs, or uses race as a factor in employment decisions, you should assume the EEOC is very, very interested. Employers should audit their DEI programs now—before the agency decides to do it for them.