As many large American companies such as McDonald’s, Google, and Microsoft, have abandoned their diversity, equity, and inclusion (DEI) programs over the past few months, Walmart has followed suit. However, major shareholders and the attorneys general of 13 states are pushing back on that decision, demanding to know how the company will combat employment discrimination.
In November, Walmart announced that it would no longer hold diversity trainings or prioritize diverse suppliers. It also stated that it would be removing the words “diversity” and “DEI” from the language in all company policies and communications, effective immediately.
In response, the attorneys general of 13 states have banded together to send a letter to Walmart asking why the company rolled back its DEI policies, and asking how the company will protect civil rights in the workplace. The attorneys general cited probable threats of boycotts and lawsuits as driving the company’s decision to dump DEI but urged Walmart to consider the customers and employees that they are alienating because of their decision.
Likewise, a group of more than 30 Walmart shareholders, who hold a combined $266 billion in assets, have requested a meeting with the company’s senior leadership and board to discuss the policy shift. The group accused Walmart of bowing to pressure by anti-DEI groups and stated that it has raised concerns about discrimination for the past 30 years.
The shareholder group also cites business data to show that Walmart has financially benefitted from promoting DEI. They claim that the retailer has provided no financial or business justifications for the elimination of DEI programs.
Walmart is currently the nation’s largest private employer of women, Black and African Americans, Hispanic and LatinX, and people of color. However, those demographics may change in light of the company’s move.
HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.
Hall Benefits Law, LLC
