Allegation of Discriminatory Hiring Practices in DEI Matters Facing Texas Roadhouse in a Civil Rights Complaint
In a series of significant developments, several civil rights complaints have been filed against companies and institutions alleging discrimination through their Diversity, Equity, and Inclusion (DEI) practices in hiring and board appointments.
- Texas Roadhouse, a Louisville, Kentucky-based steakhouse chain, is facing a civil rights complaint by America First Legal (AFL) with the Equal Employment Opportunity Commission (EEOC). The complaint alleges that the company discriminates based on race and gender by using demographic criteria in hiring, promotions, and Board appointments, violating the Civil Rights Act of 1964. AFL claims the company prioritizes unlawful DEI policies over shareholder value.
- Similarly, Cracker Barrel Old Country Store is under a civil rights complaint by AFL for alleged discriminatory DEI policies, including offering employment benefits exclusively to certain demographic groups within “Business Resource Groups.”
- The AFL Counsel Will Scolinos stated that Texas Roadhouse’s DEI policies are a relic of an era where DEI contaminated American culture with the false belief that good intentions make discrimination okay. Scolinos further added that Texas Roadhouse's actions show an inappropriate disregard of their fiduciary duties to the company and its shareholders.
- The complaint against Cracker Barrel accuses their "Business Resource Groups" of discriminating on the basis of race and sex.
- Texas Roadhouse provided a chart breaking down the percentages of their employees and managers who were either women or people of color in its 2024 10-K annual report. However, the complaint suggests that these percentages were achieved through unlawful means.
- Other companies, such as Costco and Apple, have resisted activist shareholder pressure to reform or eliminate their DEI initiatives.
- The U.S. Department of Justice (DOJ) has recently issued guidance emphasizing that recipients of federal funding must avoid race- or sex-based quotas, preferences, or identity-based language in hiring or promotions. The DOJ explicitly prohibits diversity quotas, references to underrepresented groups in hiring goals, and programming limited to certain racial or gender groups, reinforcing that hiring decisions should be based on merit and legitimate business reasons.
These recent developments indicate active enforcement and scrutiny against DEI practices that allegedly discriminate based on legally protected characteristics, including formal investigations and complaints at both private companies and public educational institutions. The DOJ guidance further clarifies the legal boundaries for DEI efforts, warning against explicit or implicit preferential treatment based on identity.
As of now, Texas Roadhouse and Cracker Barrel have not responded to requests for comment regarding the AFL's civil rights complaints against them.
- The Complaint against Cracker Barrel also alleges that their DEI policies have discriminated on the basis of race and sex, similar to the claims against Texas Roadhouse.
- In the realm of politics and general-news, debates regarding the balance between shareholder value and DEI practices have surfaced, with activist shareholders advocating for DEI reforms in companies like Costco and Apple.
- Cases of crime-and-justice may arise if these alleged discriminatory practices are found to be pervasive in industries such as finance, business, or education, resulting in legal repercussions for non-compliant institutions.
