Employers are fully aware of federal executive orders prohibiting the use of illegal diversity, equity, and inclusion (DEI) policies by federal agencies or federal contractors. State legislatures across the country have followed suit, including a bill filed last week in the North Carolina General Assembly. House Bill 171 would prohibit a range of DEI practices by state and local governments, as well as any private business that receives state funds, including training and assigning workers to dedicated DEI positions.
The bill defines prohibited DEI as any practice that involves any actions affecting terms and conditions of employment other than merit-based decisions. It also prohibits the promotion of differential treatment of or providing special benefits to individuals on the basis of race, sex, color, ethnicity, nationality, country of origin, or sexual orientation. The proposed law would apply to state and local governments, but also to employers in health care, education, and other industries that receive state funding.
If the bill clears the legislature, it would have to overcome a likely veto from Governor Josh Stein. The bill would also likely face legal challenges from private businesses based on First Amendment viewpoint discrimination claims. North Carolina employers should monitor state legislative developments as well as federal moves that could affect their workforces and workplace practices.
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