New guidance from Attorney General Bondi urges federal funding recipients to reassess DEI programs to ensure compliance with anti-discrimination laws. This memo highlights actions deemed “unlawful DEI,” including race-based scholarships, preferential hiring, and misapplied “neutral” criteria.

What This Means for Employers:

• Federal consequences: Noncompliance risks include funding revocation or False Claims Act liability.

• Beyond federal funding: Private employers should also review DEI policies for legal risks.

• Focused best practices: Ensure inclusive environments, prioritize skills and qualifications, and eliminate demographic-driven criteria.

Epstein Becker Green’s Lauri Rasnick unpacks these developments in this week’s Employment Law This Week®.

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