Amongst the flurry of recent executive orders targeting the use of diversity, equity, and inclusion (“DEI”) policies and programs under the federal government, it is easy to miss similar initiatives at the state and local levels. North Carolina House Bill 171, titled “Equality in State Agencies/Prohibition on DEI,” seeks to prohibit certain DEI measures implemented by state and local government employers, as well as some private employers who receive state funds.
Under House Bill 171, no state employer could “promote, support, fund, implement or maintain workplace DEI programs, policies, or initiatives.” The bill would also prohibit state funds or public monies to: (1) utilize DEI in hirings, employment, or the awarding of state contracts, (2) offer or require DEI training, or (3) maintain DEI offices or dedicated staff positions.
The North Carolina House Judiciary Committee approved the bill on Tuesday, April 1, 2025. The next step in its advancement will be at the House Rules, Calendar, and Operations of the House Committee. If reported favorably with that Committee, the bill will proceed to the floor of the House for a vote. A prompt veto attempt from Governor Josh Stein is expected to follow should the bill clear the legislature.
Employers should continue to remain vigilant of pending state legislation, in addition to existing federal executive orders, to ensure that their DEI policies and programs are legally compliant. Using recent EEOC guidance as a hallmark, this would mean ensuring:
- Employment decisions are not made on account of protected characteristics, such as hiring quotas.
- Employees are not limited, segregated, or classified based on their race, sex, or other protected characteristics, especially in reference to employee affinity groups.
- Employees are not retaliated against for engaging in protected activity, such as opposing unlawful DEI practices.
Our employment attorneys are available to review your current DEI policies and programs and assist with risk assessments, as needed.
