Nike is being investigated by the Equal Employment Opportunity Commission.
Credit...Tingshu Wang/Reuters

Employment Commission Investigates Nike for Discrimination Against White Workers

The Equal Employment Opportunity Commission has worked under President Trump to dismantle diversity, equity and inclusion policies.

by · NY Times

The Equal Employment Opportunity Commission said on Wednesday that it had opened an investigation into Nike, the sportswear giant, for policies that it said discriminated against white workers.

The commission, born of the Civil Rights Act to enforce laws against employment discrimination, said it was investigating “systemic allegations of D.E.I.-related intentional race discrimination” against white employees and job applicants at Nike.

The investigation is the first major legal action that the commission has announced under Andrea Lucas, its chair, who has made diversity, equity and inclusion programs a target since taking the role last year. In a recent interview, she said that “it’s clear that I have priorities to deal with race and sex discrimination coming out of D.E.I.”

The move against Nike is a high-profile shot across the bow, most likely to send a message to other companies that have adopted D.E.I. initiatives and hiring practices.

The investigation, which is being led by the commission’s St. Louis office, was disclosed on Wednesday when the E.E.O.C. filed a motion in federal court in Missouri seeking to force Nike to comply with a subpoena from September.

According to court documents filed with the motion, Ms. Lucas filed a discrimination charge against Nike in 2024, when she was a commissioner on the E.E.O.C., which then had a Democratic majority. Nike has fought the subpoena and made only partial responses to requests for information, according to the agency’s court filing.

“The E.E.O.C. seeks information directly relevant to the allegations that Nike subjected white employees, applicants and training program participants to disparate treatment based on race in various employment decisions, including layoffs, internship programs and mentoring, leadership development and other career development programs,” the commission said in its motion filed Wednesday.

Nike didn’t respond to requests for comment.

The scrutiny comes at a difficult time for Nike. The world’s largest athletic-wear company has been trying to recover after strategic missteps in recent years left it in a long sales rut. Management has worked to eliminate old inventory, speed up product development and keep the brand focused on sports and athletes.

In 2021, Nike presented a five-year plan for a more diverse work force. Management tied some executive compensation to diversity objectives, which included representation for women in leadership positions and a target of 35 percent representation of racial minorities in its U.S. work force.

“Bringing Nike’s mission to life starts with our people and creating a work force that represents different backgrounds, experiences and perspectives,” Nike’s website says.

Nike did not release a corporate sustainability report last year, which it typically produces around March and includes updates on diversity goals. The company said at the time that it remained committed to those targets.

Nike said in its most recent report, from its 2023 fiscal year, that it had doubled investments on professional development programs for minorities in the United States. It has also run a program to attract a diverse set of suppliers, which accounted for more than $1 billion in spending that year.

Last week, in a response to the subpoena, which the agency filed along with its motion on Wednesday, Nike’s lawyers called the subpoena “broad, ambiguous and unduly burdensome.”

Nike underwent a reorganization in 2024, pushing out its chief executive amid a sales slump. Elliott Hill, who came out of retirement to take the top role, has reworked the company’s organizational structure and replaced many of its senior executives.

Nike has made progress in its turnaround effort under Mr. Hill. Sales rose 1 percent last quarter, boosted by a revitalized business in North America. Despite that, executives said in December that global revenue was expected to fall this quarter as they expected continued weak sales in China, a critical market for sneakers and sportswear.

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