June 20, 2025 - Issue #17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ABOUT PROJECT FORWARD
|
Led by BRIDGE, Project FORWARD is a cross-industry initiative,
designed to chart our collective path forward and meet the
current moment head-on. In partnership with top experts in
academia, law and our board members, we are dedicated to
equipping, educating, and empowering leaders in diversity,
equity and inclusion (DEI), marketing, and business to
continue to drive inclusive innovation and sustainable growth.
Every Friday, Project FORWARD provides critical updates on
executive orders (EO) and legislative developments, featuring
legal interpretations from
Stacy Hawkins, Esq., Diversity & Employment Practices
Consultant and Rutgers Professor of Law, and
Jessica Golden Cortes, Partner, Labor + Employment Group, Davis+Gilbert LLP. We
will also include the BRIDGE POV and tangible actions to
consider.*
PLEASE NOTE: INCLUDED IN THIS ISSUE IS A SPECIAL SECTION
THAT REVEALS THE FINDINGS OF RESEARCH CONDUCTED BY THE
MELTZER CENTER AND CATALYST
We encourage our community to remain informed and proactive.
If you have questions or insights you’d like to share, please
email
[email protected].
FOR PAST ISSUES OF PROJECT FORWARD WEEKLY GUIDANCE PLEASE VISIT HERE.
*These Project FORWARD updates should not be construed as
legal advice or counsel. They are for educational and
instructive purposes only, to aid our understanding about
how best to actively continue our mission in response to
this moment.
|
|
|
PREVIOUSLY ISSUED EXECUTIVE ORDERS
|
For continued reference these are the EOs targeting DEI and
LGBTQ+ protections that have been issued:
We will continue to monitor activities that relate to these
EOs either directly or indirectly.
|
|
|
BEST BUY SHAREHOLDERS REJECT ANTI-DEI PROPOSAL
|
OVERVIEW
The National Center for Public Policy Research (NCPPR)
continues to face defeat in its attempts to convince
shareholders to abandon inclusion. To date, every single
proposal they have submitted in 2025 have been rejected by
corporate shareholders.
Last week we reported on a number of shareholder votes
rejecting anti-DEI and/or anti-LGTBQ proposals. Tallies are
now in for the following:
-
ALPHABET: 99% (1% abstained) voted no on
two proposals
-
AMERICAN AIRLINES: 98.2% voted no
-
CATERPILLAR: 97% voted no
-
TARGET: Updated to 92% against
BEST BUY
At its annual meeting on June 13, 2025, Best Buy shareholders
rejected a proposal urging the company to withdraw from the
Human Rights Campaign’s Corporate Equality Index. The
proposal, submitted by the National Center for Public Policy
Research, claimed the index promoted “hyper-partisan, divisive
and increasingly radical criteria” and argued that continued
participation posed a fiduciary risk. In response in their
proxy statement, Best Buy’s Board urged a “No” vote, stating
the company is committed to “understanding the needs of our
diverse global workforce and inclusive culture as part of its
day‑to-day operations.”
While the tallies are currently not available, it is
understood that the proposal was defeated by a wide margin.
BRIDGE POV
So far in 2025, shareholders at
27 major U.S. companies have voted to reject anti‑DEI
proposals underscoring that investor rejection of
politicized rollbacks is holding firm. Across sectors, shareholders continue to issue a clear
mandate: inclusion is a business expectation. These are not
symbolic wins—they are strategic signals.
-
Treat Shareholder Outcomes as Strategic Cover, Not Just
Data: These votes are more than results—they are a shield. Use
them in boardrooms, regulatory discussions, and stakeholder
messaging to reinforce that your DEI commitments are aligned
with fiduciary duty and long-term value creation.
-
Anchor DEI in Business Performance, Not Social
Framing: The proposals that fail most decisively are those met
with a clear performance narrative. Make sure your DEI
agenda is tied to outcomes—innovation, risk mitigation,
talent acquisition—not positioned as moral signaling.
-
Anticipate 2026: The Next Proxy Fight Starts Now: The volume and velocity of these proposals are unlikely
to slow. Begin scenario-planning now with legal, investor
relations, and DEI leaders. Prepare language, update
documentation, and clarify governance roles before the next
cycle begins.
|
|
|
NIH ORDERED TO RESTORE CANCELLED GRANTS UNDER ANTI-DEI
CERTIFICATION POLICY
|
OVERVIEW
As reported in Issue 10, on April 26, 2025, the National
Institutes of Health (NIH)—operating under the U.S. Department
of Health and Human Services—issued Notice NOT-OD-25-090,
adding a new condition to all NIH awards.
The policy requires grantees to certify that they are not
operating “any programs that advance or promote DEI, DEIA,
or discriminatory equity ideology in violation of Federal
anti-discrimination law.”
This certification applies retroactively and prospectively,
injecting new scrutiny into how DEI-related work is defined
and funded.
Over 700 NIH grants have been terminated by the NIH while also
doubling the number of grant rejections so far in 2025.
On June 16, a federal district court in Massachusetts
ordered NIH to reinstate canceled grants, siding with a
coalition of sixteen states and the American Public Health
Association that challenged the rule.
From the bench, the judge
described NIH’s actions as “racial discrimination and
discrimination against America’s LGBTQ community.”
A written opinion will follow, but the ruling immediately
halts enforcement of the policy against the plaintiffs.
LEGAL INTERPRETATION
The court found that the
government failed to justify the cancellation of
equity-related research grants on lawful, non-ideological
grounds.
While NIH claimed the grants violated anti-discrimination
laws,
it presented no evidence that the grantees or their work
were actually discriminatory.
The court ruled that terminating funding based solely on
ideological disapproval—without proof of legal
violations—constitutes unlawful discrimination by the
government. The decision reinforces a clear standard: federal
enforcement actions must be grounded in evidence, not
ideology.
BRIDGE POV
This week’s federal court order restoring canceled NIH grants
is a reminder that ideological disapproval is not a legal
basis for enforcement. While the court did not rule on the
merits of DEI efforts themselves—it ruled that the government
cannot revoke funding without clear, evidence-based
justification. Alleging unlawful discrimination is not enough;
it must be proven.
For executive teams, the message is clear:
while political rhetoric may escalate, the courts are
increasingly drawing a line.
Institutions that stay disciplined—anchoring DEI in
compliance, science, and business value—are better protected,
and better positioned to lead.
-
Audit for Exposure in Federal Funding Streams: If your organization receives federal research or public
health funding, review certification language, grant
compliance protocols, and internal DEI documentation. Ensure
clarity around lawful DEI activities and prepare legal
positioning in case similar policies emerge in other
agencies.
-
Use Legal Precedent to Strengthen Internal
Confidence: Share this ruling with legal, compliance, and public
affairs teams. The decision offers formal language and
precedent to counter claims that DEI commitments are legally
risky. Use it to reinforce internal messaging that inclusion
is not only lawful—it’s protected.
-
Separate Political Noise from Governance Reality: This ruling underscores that not all political actions
carry legal weight. Boards and executive teams should
distinguish between politicized pressure and judicial
enforceability—and respond accordingly. Maintain a posture
that is legally sound, fact-based, and strategically
aligned.
|
|
|
AMERICAN BAR ASSOCIATION SUES TRUMP ADMINISTRATION
ALLEGING FIRST AMENDMENT VIOLATIONS
|
OVERVIEW
As covered in previous issues (6, 8, 12 and 14), the Trump
Administration issued a series of Executive Orders targeting
law firms that represented political opponents. These orders
revoked security clearances and framed the actions as part of
a broader effort to dismantle DEI-related practices and
enforce political loyalty under the guise of national security
and anti-discrimination.
On May 2, the District Court for the District of Columbia
ruled
that the Trump Administration’s revocation of Perkins
Coie’s security clearances violated the First
Amendment.
The court found no evidence of illegal conduct, only viewpoint
discrimination.
Then on May 23 and May 27, respectively,
Jenner & Block and WilmerHale secured similar
rulings.
In the Jenner & Block decision, the court held that the
firm was “improperly singled out” for its representation of
clients disfavored by the Administration—calling the Executive Order “a direct violation of the
First Amendment’s prohibition against government retaliation
for protected expression.” Susman Godfrey, the fourth firm named, remains protected
under a temporary injunction.
These rulings not only uphold the constitutional rights of
the individual firms—they also signal to the more than 500
law firms that filed supportive briefs that the rule of law
still holds.
Now, the American Bar Association (ABA)—the nation’s largest
professional legal body—has filed suit against the Trump Administration, alleging a
broader campaign of intimidation against lawyers and firms
based on client representation and political association. The ABA’s complaint cites a “chilling effect across the legal
profession,”
claiming the administration’s actions have impaired access
to counsel and undermined the justice system.
Like the prior cases, the ABA suit is grounded in First
Amendment protections—free speech and free association.
If successful, the ruling would extend legal protections
beyond the four named firms, effectively blocking the
federal government from using Executive Orders to pressure
or punish lawyers based on viewpoint or affiliation.
LEGAL INTERPRETATION
All four rulings—Perkins Coie, Jenner & Block, WilmerHale,
and Susman Godfrey—were issued by the U.S. District Court for
the District of Columbia,
each finding that the Trump Administration’s actions
violated the First Amendment’s protections of free speech
and association. The courts consistently held that revoking
security clearances based on client representation or
viewpoint constituted unconstitutional retaliation.
The ABA’s lawsuit
builds on this legal foundation, but extends
the stakes. While the prior rulings protect the individual
firms, a successful outcome in the ABA case
would set a broader legal bar, effectively prohibiting
future administrations from issuing similar retaliatory
orders across the legal profession.
It would also reaffirm that legal representation—even in
politically sensitive matters—is constitutionally protected
activity, not grounds for government sanction.
BRIDGE POV
Federal court rulings striking down the retaliation against
major law firms are decisively failing in court
reinforcing the use of government power to intimidate or
punish legal advocacy has constitutional limits. Each decision reaffirms that client representation is
unequivocally protected speech and association under the
Constitution.
The ABA filing suit extends the stakes - moving the
implications beyond individual firms to the integrity of the
profession itself. This is a clear reminder that compliance
with law, not alignment with power, is the standard that holds
in court. In an increasingly polarized environment,
staying grounded in legal principle and ethical discipline
— not political calculation or capitulation—is the strongest
line of defense against overreach.
-
Reinforce Legal Independence in Public Messaging: If your organization engages counsel on contentious
issues, ensure your public positioning frames that legal
work as protected, professional, and non-political. Reaffirm
that the right to representation is not up for debate.
-
Align Legal, Risk, and DEI Teams on Retaliation
Readiness:
These rulings show how quickly political pressure can
escalate into legal retaliation. Ensure internal teams are
aligned on protocols for rapid response, documentation, and
public positioning if targeted.
-
Monitor the ABA Case as a Sector-Wide Precedent: The ABA lawsuit could set a formal legal barrier against
government intimidation across the profession. Track its
outcome not just as legal news, but as strategic insulation
for any institution doing work that could be politically
targeted.
|
|
|
NEW DOJ CIVIL DIVISION MEMO TARGETS DEI UNDER CIVIL
RIGHTS ENFORCEMENT PRIORITIES
|
OVERVIEW
The newly appointed Assistant Attorney General for the Civil
Division has
issued a formal memorandum outlining the Division’s five
enforcement priorities
under the Trump Administration. The areas of focus are:
-
Combatting discriminatory practices and policies
- Ending antisemitism
- Protecting women and children
- Ending “sanctuary” jurisdictions
-
Prioritizing denaturalization of naturalized U.S. citizens
Each priority aligns directly with previous Executive Orders
and reflects a coordinated shift in enforcement posture.
Most notably, under the first priority, the memo states that
the Civil Division will target “illegal private-sector DEI
preferences, mandates, policies, programs, and activities,”
and will pursue False Claims Act violations
against federal fund recipients that “knowingly violate civil
rights laws.” The language signals a broad interpretation of
what constitutes “discriminatory” DEI activity—and introduces
potential federal fraud liability for grantees, contractors,
and institutions operating DEI programs tied to government
funding.
LEGAL INTERPRETATION
Title VII of the Civil Rights Act of 1964
governs workplace discrimination in the private sector and vests
primary enforcement authority with the Equal Employment
Opportunity Commission (EEOC). The Department of Justice
(DOJ) has limited enforcement authority under Title VII,
typically exercised through its Civil Rights
Division,
primarily in actions involving state and local governments.
The newly issued memorandum signals a broader enforcement
posture across the Department. While the Civil Rights Division
continues to lead enforcement under Title VII and other civil
rights statutes,
the Civil Division is expected to lead False Claims Act
investigations and prosecutions, particularly where
DEI-related certifications are alleged to be false or
misleading.
Under the False Claims Act, violations occur when a federal
grantee or contractor submits false or fraudulent
representations to the government. Entities subject to the
January 21, 2025 Executive Order Ending Illegal Discrimination
and Restoring Merit-Based Opportunity should
ensure they
are in full compliance with Title VII when submitting
federal certifications, as misalignment could be interpreted
as a false claim.
Although
multiple courts have issued injunctions against enforcement
of the anti-DEI certification requirement, as of June 13,
2025, the federal contractor portal includes a new pop-up
requiring confirmation of no false claims before invoice
submission. Companies should consult legal counsel before certifying
compliance.
BRIDGE POV
Despite active court injunctions blocking enforcement of
anti-DEI certification requirements, the Department of
Justice is attempting to advance its enforcement
agenda
through a new pathway. By positioning DEI-related activity as
a potential False Claims Act violation, the Civil Division is
shifting away from traditional civil rights enforcement toward
a funding-based compliance model.
While the law remains clear—injunctions are in place and civil
rights protections still govern—this memorandum signals how
the administration may test the boundaries of existing legal
restraints.
-
Review All DEI-Related Federal Certifications Through
Legal Counsel:
Certifications tied to nondiscrimination or merit-based
requirements should be treated as legal attestations—not
administrative formalities. Ensure legal review before
submission.
-
Clarify Internal Alignment Across Legal, Compliance, and
DEI Functions: Ensure all teams are operating from a shared
understanding of current legal protections, active
injunctions, and what is (and is not) enforceable under
current law.
-
Reframe DEI in Federally Funded Programs With Legal
Precision: Where DEI initiatives intersect with federal funds,
confirm that language, policies, and metrics are clearly
aligned with Title VII and race-neutral, nondiscriminatory
standards.
|
|
|
DOJ ANNOUNCES FIRST SETTLEMENT UNDER NEW ENFORCEMENT
PRIORITIES
|
OVERVIEW
The U.S. Department of Justice has reached a settlement with
Epik Solutions, a California-based tech recruiting firm,
for alleged violations of the Immigration and Nationality
Act—specifically favoring foreign H‑1B visa holders over
qualified U.S. workers. On June 10, 2025, DOJ announced the
settlement requiring Epik Solutions to pay a $71,916 civil
penalty, revise its recruitment and hiring policies, complete
anti-discrimination training, and cease placing job postings
excluding U.S. applicants.
This marks the first enforcement action under the
relaunched “Protecting U.S. Workers Initiative,” signaling DOJ’s intensified focus on ensuring lawful hiring
practices and protecting American workers.
LEGAL INTERPRETATION
This case was brought under the Immigration and Nationality
Act (INA), which prohibits employers from discriminating in
hiring based on citizenship status or national origin. The
Department of Justice alleged that Epik Solutions gave
unlawful preference to foreign H‑1B visa holders over
qualified U.S. workers.
The enforcement action was led by the Civil Rights Division’s
Immigrant and Employee Rights Section and marks the first case
under the DOJ’s relaunched Protecting U.S. Workers Initiative.
This initiative focuses on safeguarding employment
opportunities for U.S. citizens and ensuring that employers
comply with federal hiring laws. The case
underscores DOJ’s emphasis on enforcing existing
anti-discrimination statutes through targeted investigations
into hiring practices.
BRIDGE POV
The DOJ’s settlement with Epik Solutions signals
renewed focus on employment-related enforcement under the
Protecting U.S. Workers Initiative.
While this case involved citizenship-based discrimination
under the Immigration and Nationality Act, it reinforces DOJ’s
broader emphasis on compliance-driven hiring
practices—especially for companies operating under federal
oversight or receiving federal funds.
This is not a shift in legal authority, but it is a signal of
tightened enforcement posture. Employers should expect greater
scrutiny of how hiring decisions align with federal
anti-discrimination laws—regardless of whether the focus is
citizenship, race, or other protected categories.
Actionable Strategies for Executive Teams
-
Audit Hiring Practices for Legal Alignment:
Ensure your hiring policies and practices are consistent
with the Immigration and Nationality Act, Title VII, and
applicable state laws. This includes how job postings are
framed, how candidates are screened, and how preferences are
documented.
-
Ensure Workforce Compliance Extends Beyond DEI: While DEI remains a strategic focus, employment compliance
extends to other protected categories. Partner with legal
teams to ensure your practices meet broader civil rights
standards—especially for federal contractors.
-
Reinforce Compliance Ownership Across Business
Functions: Make sure hiring, legal, and compliance teams are fully
coordinated on how employment decisions are made, recorded,
and reviewed—especially in regulated or high-visibility
roles. Clarity and documentation are critical to risk
management.
|
|
|
|
|
NEWLY PUBLISHED RESEARCH FROM
THE MELTZER CENTER AND CATALYST
|
|
|
|
|
|
NEW DATA CONFIRMS LEGAL AND BUSINESS RISKS OF DEI
RETREAT
|
OVERVIEW
The Meltzer Center and Catalyst surveyed 2,500 U.S. business
leaders, legal professionals, and employees to assess the
impacts of cutting DEI initiatives amid legal, political, and
social headwinds. Their report, Risks of Retreat: The Enduring
Inclusion Imperative,
reveals that stepping back from DEI is far from neutral—it
brings substantial risk across multiple dimensions.
-
Legal concerns:
83% of C-suite leaders and 88% of legal leaders believe
maintaining or expanding DEI mitigates legal risk—and rather than reduce liability, abandoning inclusion
increases vulnerability to traditional discrimination claims
-
Talent and retention: 76% of employees,
rising to 86% of Gen Z, report
they are more likely to stay at a company with robust DEI
programs, while 61% of Gen Z would not consider applying to a
company without them
-
Financial & reputation: 77% of executives link DEI to
improved financial outcomes and brand trust;
consumers and employees alike reward companies with
inclusion-centered practices
In addition to these risks,
the study notes the “three Ps” legal framework for building
resilient DEI: eliminating preferential treatment, avoiding
protected-class focus, and ensuring palpable benefit tied to
merit—a structure leaders can use to assess and optimize
current programs.
LEGAL INTERPRETATION
Title VII of the Civil Rights Act of 1964 prohibits employment
discrimination based on race, color, national origin,
religion, and sex. While recent efforts—most notably by the
Trump Administration—have sought to use Title VII to challenge
DEI initiatives as “reverse discrimination” against white,
male, or cisgender individuals,
the overwhelming majority of Title VII claims continue to
be filed by racial and gender minorities.
This dual exposure means that companies must balance both
sides of the risk spectrum.
As reflected in the Meltzer Center and Catalyst findings,
many legal and executive leaders are now weighing the more
established and statistically likely risks from traditional
discrimination claims more heavily than the less frequent
but politically salient reverse discrimination
challenges.
To navigate this complexity, companies should continue to work
closely with legal counsel to ensure that DEI efforts remain
fully compliant with all federal, state, and local
anti-discrimination laws—and are framed to meet evolving
enforcement expectations without abandoning their foundational
goals.
BRIDGE POV
The research from the Meltzer Center and Catalyst reinforces
what BRIDGE has said all along:
politics is not a business strategy and operationalizing
inclusion across the organization reduces vulnerabilities
and mitigates risk.
The stakes for business, leadership, and the future of
inclusive governance have never been clearer.
Understanding the transformational opportunity of inclusion
when extended across organizational, marketing management,
commercial, communications, in-store and AI practices in how
companies see, serve and show up in the marketplace is
critical to business growth and future proofing.
DEI is not about checking a box. It’s about building
organizations capable of serving, hiring, and scaling with the
full complexity of the world they operate in. It is about
bridging workplace to marketplace impact for
exponential higher returns on business outcomes.
The risk of walking away from inclusion is not theoretical.
It is legal. It is reputational. It is operational. And
above all, it is strategic. Companies should not be debating whether to retreat—they must recalibrate how to move forward, with clarity and legal discipline and in full partnership
with their DEI leaders.
This moment demands
disciplined optimism, radical integrity and courageous
leadership—the kind that
holds the line when headlines swirl, when political winds
shift, and when pressure mounts to dilute the very
strategies that build enduring, future-facing
businesses.
Compliance is not a ceiling. It is the floor. Inclusion is
not a liability. It is leadership. Culture is not a
philosophy. It’s how you win.
-
Reinforce DEI as Core Business Infrastructure: Treat DEI as a framework that underpins workforce
performance, customer relevance, and brand trust. Audit
inclusion maturity across talent, marketing, management,
commercial, communications, in-store, and AI practices—and
resource it accordingly.
-
Reposition DEI as a Business Function, Not an HR Program: The time is now to move DEI out of the margins and into the
core. Structure DEI as a business opportunity with direct
accountability to the CEO—fully integrated with strategy,
legal, and commercial decision-making. Visibility and
reporting lines should reflect its enterprise-wide impact.
-
Treat Culture as Operational Strategy: Culture is not soft infrastructure—it’s the system that
determines how decisions get made, who gets heard, and how
people perform. Codify inclusion into leadership
expectations, team dynamics, and accountability mechanisms.
Culture clarity drives business clarity.
|
|
|
COMMUNITY EVENTS
|
BRIDGE invites everyone to join for our
monthly Community Calls which take place on
the last Thursday of every month, gathering DEI marketing, and
business leaders committed to driving systemic change within
our organizations and the industry at large.
Our next call is
Thursday, June 26th from 12-1p ET.
Pride is not just about celebration. It’s about visibility,
safety, and the fundamental right to exist without fear.
This year, with LGBTQ+ rights under coordinated attack, it
is only fitting that our June call will honor Pride month. Join us as we discuss the complexities this population faces
and how we can support them.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1276 Auto Park Way Suite D, PMB 183, Escondido,
CA 92029
|
|
This email was sent to {{contact.EMAIL}}
|
|
You've received it because you've subscribed to
our newsletter.
|
|
|
|
|
|
|
|