EEOC Dropped Nike DEI Settlement After Trump's Return

The U.S. Equal Employment Opportunity Commission (EEOC) had reached a confidential settlement agreement with Nike concerning its diversity, equity, and inclusion (DEI) practices in early January 2025. This investigation, initiated by EEOC Chair Andrea Lucas through a commissioner's charge, focused on allegations of discrimination against white employees, a departure from typical cases initiated by worker complaints. The New York Times reported this week that the settlement was withdrawn shortly after Donald Trump assumed office for his second term as President.

Following the withdrawal of the settlement, the EEOC significantly broadened its information requests from Nike. These requests included detailed data on job descriptions, pay scales, executive compensation, and layoff criteria. The agency also sought to conduct interviews with Nike employees. When Nike resisted these expanded demands, the EEOC escalated the matter by seeking to enforce a subpoena in court, a step typically taken when an employer does not comply with information requests.

The EEOC's decision to pursue enforcement through the courts is considered a significant move. The investigation's public nature, stemming from the court action to enforce the subpoena, contrasted with the usual private conduct of such inquiries. The shift in the EEOC's approach and the subsequent public scrutiny highlight a notable change in the agency's priorities under Chair Lucas, particularly concerning discrimination claims beyond those traditionally brought by protected groups.