Pulling back from DEI increases legal risk — and costs organizations qualified women

Pulling back from DEI increases legal risk — and costs organizations qualified women

Amy Diehl is chief information officer at Wilson College, and a gender equity researcher, speaker and lawsuit expert witness. She is co-author of “Glass Walls: Shattering the Six Gender Bias Barriers Still Holding Women Back at Work.”

As organizations scale back diversity, equity and inclusion efforts under political and social pressure, many assume they are reducing risk. In reality, they may be increasing it. The U.S. Equal Employment Opportunity Commission is continuing to enforce discrimination protections for women.

On July 22, 2026, EEOC announced a $2.6 million settlement with recycler TCI of Alabama for hiring only men for laborer positions, including directing staffing agencies to refer only male applicants while excluding qualified women. The case highlights a persistent reality: Antidiscrimination requirements remain in place.

This dynamic also recently played out at Ephraim McDowell Health. The chief executive officer allegedly favored a male candidate for a leadership role based on the belief that “men work better with men,” even though the woman who was passed over met the qualifications and the selected candidate did not. After she raised concerns with EEOC, EMH was reported to have retaliated by terminating her employment. The resulting EEOC lawsuit was resolved through a $335,000 settlement and compliance requirements.

In another recent case, EEOC sued a Pizza Hut franchisee after a female employee reported harassment by her supervisor. After she ended their personal relationship, the supervisor allegedly withheld support and resources, and she was later terminated after reporting the conduct, raising claims of both harassment and retaliation. The franchisee was ordered to pay $35,000 in damages and take compliance measures.

These cases are not outliers — they are the kinds of failures EEOC is pursuing. Sex discrimination remains a central focus for EEOC and retaliation continues to be the most frequently cited claim. For HR leaders, the message is clear: Compliance obligations have not changed, even as the conversation around DEI evolves.

Amy Diehl, CIO, gender equity researcher and co-author of “Glass Walls: Shattering the Six Gender Bias Barriers Still Holding Women Back at Work.”

Courtesy of Amy Diehl

 

Even when discrimination against women doesn’t result in a formal complaint or a lawsuit, it still harms organizations. When women are subjected to harassment and discrimination, instead of spending their time on their company’s priorities, they must spend their energy combating the hostility. Sometimes, the organization loses the employee entirely. In “Glass Walls,” Leanne Dzubinski and I recount the experience of a professor who, after repeated belittling by a male supervisor and ignored complaints, ultimately quit — a tangible loss for her institution.

Thankfully, HR leaders have tools to prevent discrimination, create inclusive and fair workplaces, and help women reach their full potential. These include eight best practices grounded in EEOC guidance and our “Glass Walls” research.

1. Written policies to prevent bias and discrimination

Effective nondiscrimination policies should articulate commitment to equal opportunity, ensure compliance with federal, state and local regulations, and provide employees with guidance for raising concerns.

One area where many policies fall short is top-down accountability. Policies must make clear that no one is exempt from expectations for professional conduct — and that employees have safe options for reporting concerns even when the offender holds authority over them.

2. Bias training to build fairer workplaces

Inclusion training can help employees recognize bias and interrupt discrimination. It should include specialized preparation for supervisors. Interactive workshops, in person or via video, are the most effective format. 

These educational settings allow participants to examine the specific barriers women face, engage in discussion, and develop actionable steps to move toward a discrimination-free workplace. Training should be integrated into onboarding and reinforced annually to sustain progress over time.

3. Workplace Culture Assessments

EEOC encourages employers to identify and address barriers to equal employment opportunity. Tools such as the Gender Bias Scale for Women Leaders, which Leanne and I created, can help pinpoint barriers, while focus groups can provide qualitative insights to complement survey findings. This data enables leaders to implement targeted interventions and address problems early, before they become more widespread or disruptive. To obtain accurate and reliable information, assessments should be anonymous or confidential. They should be conducted at regular intervals, such as annually, or before and after interventions designed to reduce bias and promote fairness.

4. Enforcement to maintain fairness

In many organizations, enforcement is uneven — or absent altogether — particularly when violations involve senior leaders or “superstar” employees. In these cases, accountability often flows in the wrong direction: The employee who reports harassment or discrimination is sidelined, while the alleged violator continues working with little disruption.

Employers may be held liable when they know or should have known about harassment or abusive conduct and fail to take corrective action. Allowing misconduct to persist because an individual is perceived as indispensable undermines organizational credibility. Enforce policies consistently, regardless of an individual’s title, tenure or perceived value.

5. Reporting policies to create clear communication pathways

Our research indicates that many women who experience harassment or discrimination face unsupportive leaders who fail to intervene. Policies should require supervisors to report suspected or observed discrimination or harassment, even in cases where an employee does not file a formal complaint.

In addition, organizations can strengthen reporting systems by investing in an ombuds service to provide employees with an impartial space to raise issues before they escalate into formal HR processes or legal disputes.

6. Investigations that are transparent, with outcomes

Once a company receives a report of bias or discrimination, EEOC recommends conducting a prompt, thorough and fair investigation, and taking appropriate corrective action. Yet investigations do not always occur, or are handled in ways that lack transparency or follow-through. When employers fail to investigate and respond effectively, they undermine legal compliance, erode employee trust and allow discriminatory behavior to persist.

7. Documentation to help maintain compliance

Organizations should retain all records of complaints and investigations, and communicate investigation outcomes in a timely manner, consistent with confidentiality requirements. Beyond compliance, organizations can use their investigation data strategically to improve prevention efforts, such as manager training, policy clarification or changes to reporting lines.

8. Protection to prevent retaliation

Retaliation can be overt, such as in cases of firing, failure to hire, demotion, or denial of benefits, overtime or promotion. It can also be subtle, such as in cases of exclusion, negative evaluations, spreading false rumors or creating hostile conditions that effectively force an employee out. Communicate a clear organizational value of protecting reporters and train all employees, especially supervisors, on the legal definitions and examples of retaliation.

Pulling back from DEI doesn’t insulate organizations from risk: It exposes them to it. HR leaders who recognize this won’t just stay compliant; they’ll protect their workforce and their bottom line.