Four of the world’s largest law firms — Kirkland & Ellis LLP, Latham & Watkins LLP, Simpson Thacher & Bartlett LLP, and A&O Shearman Sterling, LLC — have reached a multi-year settlement with the U.S. Equal Employment Opportunity Commission over concerns about their diversity, equity, and inclusion (DEI) policies.
The agreement, announced Thursday, resolves an inquiry initiated by the EEOC in March following letters sent by Acting Chair Andrea Lucas. Those letters questioned whether DEI-related practices at certain “BigLaw” firms resulted in unlawful race- or sex-based disparate treatment, potentially violating Title VII of the Civil Rights Act of 1964.
Focus on hiring, training, and compensation practices
The EEOC’s inquiry targeted practices that may have affected white or male employees, applicants, and training participants. The agency sought information related to hiring, compensation, promotions, demotions, terminations, and access to programs such as summer associate hiring, mentorship, and leadership development.
Rather than contest the investigation, the four firms chose to voluntarily resolve the matter without admitting liability.
Under the terms of the agreement, the firms have:
- Reaffirmed their commitment to merit-based hiring, promotion, and retention;
- Agreed not to engage in employment practices that include unlawful preferences based on race, sex, or other protected characteristics;
- Pledged to discontinue use of the term “DEI” in connection with lawful employment practices, such as those related to accessibility, religious accommodation, or pregnancy;
- Accepted compliance monitoring by the EEOC.
EEOC chair calls for industry leadership
Lucas welcomed the agreement and expressed hope that the firms’ actions would set an example.
“We are pleased with the commitments made by Kirkland & Ellis, Latham & Watkins, Simpson Thacher, and A&O Shearman,” she said. “We are hopeful these firms will be leaders in their industry by eliminating potentially unlawful DEI-based employment practices and returning to merit-based equal employment opportunity for all.”
The EEOC emphasized that the primary goal of Title VII is voluntary compliance with federal law. The agency continues to publish technical assistance on how DEI programs may intersect with antidiscrimination laws.
The settlement is one of the most high-profile actions to date involving the federal scrutiny of corporate DEI programs, signaling heightened attention from regulators on how such initiatives are implemented in practice.
