Changing federal policies pave the way for confusion among employers. After federal policymakers announced new policies intended to roll back diversity, equity and inclusion (DEI) programs at the federal level, there has been a lot of confusion about what still protects employees.
Companies adjusting their employment practices must take steps to remain compliant with all applicable state and federal laws, even if they make DEI initiatives less of a priority. What federal rules have changed?
With every new administration comes new federal policies
After the 2024 election, which included a degree of controversy about DEI initiatives, changes were all but inevitable after the transition of authority. Historically, DEI initiatives have served to incentivize hiring workers with certain protected characteristics. Companies in industries dominated by one sex or race may have previously embraced DEI programs when hiring or promoting professionals.
With the end of federal support for DEI programs comes a shift in corporate policy that could have some bearing on worker complaints toward employers. Employers need to understand that there’s a difference between voluntary participation in DEI initiatives intended to diversify a workforce and mandatory compliance with anti-discrimination statutes.
Indiana law still protects employees
Federal regulations and state statutes prevent employers from discriminating against workers on the basis of protected characteristics. Those characteristics include sex, race and religion. The rights of workers to receive consideration based on their job performance, educational history and employment background rather than their protected characteristics persist despite the end of federal support for DEI initiatives.
Employees should not lose their jobs or key opportunities because of their protected characteristics. Additionally, they do not have to tolerate harassment in the workplace. The failure to address and actively prevent workplace harassment is a common form of discrimination. So is retaliation or employers punishing those who report harassment to human resources or management.
Workers still have protection under both Indiana regulations and federal anti-discrimination statutes despite the end of certain voluntary DEI policies. The Indiana Civil Rights Commission still has the authority to respond to claims made by workers. The Equal Employment Opportunity Commission (EEOC) can also investigate allegations of discrimination, harassment and retaliation.
Employers may need to review how they adjust their operating practices in light of changing federal regulations and actively work to ensure continued compliance with anti-discrimination rules. Ensuring that the company complies with existing regulations and rules established by judicial precedents at the state and federal levels is critical to the prevention of workplace discrimination.
Organizations with 15 or more employees typically need to be proactive about ensuring compliance with anti-discrimination regulations. Consulting with attorneys familiar with Indiana rules and federal regulations can help businesses limit their risk of lawsuits as they adjust their practices in light of shifting DEI policies.