America First Legal Accuses Macy’s of Racially Discriminatory Diversity Plan

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Macy’s Inc. is the latest target of America First Legal (AFL), a conservative group led by former Trump adviser Stephen Miller. AFL alleges that the retail giant has implemented a racially discriminatory diversity plan, urging the US Equal Employment Opportunity Commission (EEOC) to investigate what they deem as “patently illegal” quotas. This move is part of AFL’s broader campaign against diversity, equity, and inclusion initiatives, claiming violations of Title VII of the 1964 Civil Rights Act.

The Allegations

AFL has sent nearly two dozen inquiries to the EEOC, questioning the diversity efforts of various high-profile companies, including NASCAR, Major League Baseball, Morgan Stanley, McDonald’s Corp., and Starbucks Corp. The group contends that these organizations’ diversity initiatives may run afoul of federal anti-discrimination laws.

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Macy’s Diversity Plan Scrutinized

Macy’s diversity plan, unveiled in 2019, outlines a five-point strategy to achieve greater ethnic diversity by 2025, particularly at senior director levels and above, with a targeted goal of 30 percent. Additionally, the plan includes a year-long program to enhance leadership skills for a select group of managers and directors from diverse backgrounds. AFL argues that Macy’s has further entrenched these policies, potentially violating federal law, as evident in its 2022 “Diversity, Equity and Inclusion Annual Report.”

AFL’s Response and Legal Action

Citing the recent US Supreme Court decision limiting race-conscious admissions policies in higher education, AFL has intensified its legal challenges against corporate diversity efforts. In a letter to the EEOC, the group has urged commissioners to exercise discretionary powers by filing a “commissioner charge” against Macy’s. Although relatively uncommon, commissioner charges can be initiated by any of the five members of the agency’s leadership panel, bypassing the need for employees or applicants to submit a discrimination charge.

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Unusual Rise in Commissioner Charges

While commissioner charges remain rare, there has been a noticeable increase, with 29 filed in fiscal year 2022, a significant jump from the three filed in the previous year. This trend aligns with AFL’s strategy to leverage legal avenues against what they perceive as overreaching diversity measures.

Allegations against Macy’s Board of Directors

In addition to the EEOC complaint, AFL has sent a letter to Macy’s board of directors and chairman, accusing the retailer’s diversity efforts of posing a threat to company assets, institutional disregard for federal civil rights laws, and breaches of fiduciary duty. This multifaceted approach underscores AFL’s commitment to challenging what it sees as improper and potentially unlawful diversity practices in corporate America.

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