US watchdog probes sportswear giant over alleged discrimination against white employees
alexandra olson And Claire Savage
The US federal agency to protect workers’ civil rights is investigating sportswear giant Nike for allegedly discriminating against white employees through its diversity policies.
The Equal Employment Opportunity Commission announced the investigation in a motion filed in Missouri federal court demanding that Nike fully comply with the subpoena for information.
The commission investigated the company’s criteria for selecting employees to be laid off, how it tracked and used employee race and ethnicity data, and information about programs that allegedly provided mentoring, leadership or career development opportunities limited by race, according to court documents.
Nike said in a statement that it was cooperating with the commission and that the subpoena “appears to be a surprising and unusual tension.”
“We have shared thousands of pages of information and detailed written responses regarding the EEOC’s investigation and are in the process of providing additional information,” Nike said in a statement sent to The Associated Press.
Commission chairwoman Andrea Lucas moved quickly to target diversity and inclusion policies she has long criticized as potentially discriminatory, aligning the agency tightly with one of President Donald Trump’s top priorities.
Nike appears to be the highest-profile company the commission has targeted with a publicly sanctioned, official anti-DEI (diversity, equity and inclusion) investigation. In November, the commission issued a similar subpoena against financial services provider Northwestern Mutual.
“When there are compelling indications, including corporate admissions in extensive public materials, that an employer’s diversity, equity and inclusion programs may violate federal prohibitions against racial discrimination or other forms of unlawful discrimination, the EEOC will take all necessary steps, including subpoena action, to provide the opportunity for a full and comprehensive investigation,” Lucas said in a statement.
The statement comes two months after Lucas posted a statement on social media urging white men to come forward if they experience racial or gender discrimination in the workplace. The post urged eligible employees to reach out to the agency “as soon as possible” and directed users to the agency’s DEI-related discrimination fact sheet.
However, the investigation into Nike does not stem from any employee complaints against the company.
Lucas filed his own complaint in May 2024 through a less commonly used tool known as a commissioner charge, according to court documents. His accusation comes several months after America First Legal, a conservative legal group founded by Trump senior adviser Stephen Miller, sent the commission a letter outlining complaints against Nike and urging the agency to file a criminal complaint with a commissioner.
America First Legal has flooded the commission with similar letters in recent years, calling for investigations into the DEI practices of major U.S. companies. It’s unclear how many other companies the commission might target through such commissioner charges. Disclosure of any accusations made by workers or commissioners is prohibited unless it results in a fine, settlement, legal action or similar public action.
Lucas’ accusation was based on information he had publicly shared about Nike’s commitment to diversity, including executives’ statements and proxy statements, according to court filings. For example, the accusation referred to Nike’s publicly announced goal in 2021 to have 35 percent representation of racial and ethnic minorities in its corporate workforce by 2025.
Race-based hiring is prohibited
Many American companies have made similar commitments in the wake of widespread racial justice protests in 2020 following the police killing of George Floyd, an unarmed black man. The companies said these commitments are not quotas, but goals they aim to achieve through measures such as expanding recruitment efforts and eliminating bias in the hiring process.
Under the Civil Rights Act, employers are prohibited from using race as a criterion in hiring or other employment decisions. Lucas has long warned that many companies are at risk of crossing that line through DEI efforts that would force executives to make race-based decisions.
In its statement, Nike said it “complies with all applicable laws, including those prohibiting discrimination. We believe our programs and practices are consistent with these obligations, and we take these matters seriously.”
