Costco Urged by Republican AGs to Repeal DEI Policies

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  • A group of 19 Republican AGs announced that they have sent a letter to Costco Wholesale Corporation, warning that its diversity, equity, and inclusion (DEI) policies may violate state and federal civil rights laws prohibiting discrimination.
  • The letter argues that Costco’s DEI policies promote race-based employment preferences and classifications to achieve racial diversity that may constitute unlawful discrimination under federal and state civil rights laws.  It cites the U.S. Supreme Court’s decision in Students for Fair Admissions v. Harvard, which struck down affirmative action in higher education, as relevant legal precedent.  The AGs further contend that Costco repealing its DEI initiatives would align with the Trump administration’s executive order Encouraging the Private Sector to End Illegal DEI Discrimination and Preferences.
  • The letter gives Costco 30 days to confirm that it has repealed its DEI policies or provide an explanation for why it has failed to do so.
  • Other AG letters regarding corporate diversity initiatives include one sent by Republican AGs to financial institutions warning that DEI and environmental, social, and governance (ESG) commitments may violate state and federal laws; one issued by 13 Democratic AGs to Walmart’s President and CEO expressing concern over the company’s decision to scale back certain DEI initiatives; and opposing letters from  Democratic and Republican AGs to Fortune 100 companies regarding their DEI efforts in light of the Supreme Court’s decision in Students for Fair Admissions v. Harvard.
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