Nike, Accused of Bias Against White Workers, Is Under Federal Investigation

It appeared to be the first time the Equal Employment Opportunity Commission has targeted diversity policies at a large company.

The federal agency that safeguards hiring practices said on Wednesday that it was investigating Nike, the sportswear giant, for diversity efforts that it said amounted to discrimination against white workers.

The Equal Employment Opportunity Commission, born of the Civil Rights Act, said it was investigating “systemic allegations of D.E.I.-related intentional race discrimination” against white employees and job applicants at Nike.

It appears to be the first time that the commission has said diversity, equity and inclusion practices in workplaces can amount to discrimination against white people, and Nike is a high-profile target. The company has sponsorship partnerships with world-famous athletes including LeBron James and Caitlin Clark. It also drew criticism from President Trump during his first term for running advertisements featuring Colin Kaepernick, the football star who knelt during the national anthem to protest racism and police brutality.

The move positions the E.E.O.C. at the vanguard of the Trump administration’s broad assault on D.E.I. practices. Mr. Trump won re-election in 2024 in part by harnessing backlash to such practices, and in office he has given voice to claims of “reverse racism” against white people.

The investigation is the most significant 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: “It’s clear that I have priorities to deal with race and sex discrimination coming out of D.E.I.”

The Nike investigation 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. At the time, the commission had a Democratic majority; it now has a 2-to-1 Republican 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 said it had provided thousands of documents and written responses to the E.E.O.C. and would continue to cooperate with the investigation.

“This feels like a surprising and unusual escalation,” Nike said. “We have had extensive, good-faith participation in an E.E.O.C. inquiry into our personnel practices, programs, and decisions and have had ongoing efforts to provide information and engage constructively with the agency.”

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.

Nike has been outspoken about some political topics in the past. In 2017, Mark Parker, who was then chief executive and is now executive chairman, wrote a memo to employees denouncing an executive order from Mr. Trump that barred people from several predominantly Muslim countries from entering the United States.

“Nike believes in a world where everyone celebrates the power of diversity,” Mr. Parker wrote.

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.

In its most recent report, from its 2023 fiscal year, Nike said it had doubled investments on professional development programs for minorities in the United States. It said it had 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 written response to the subpoena — both of which the agency filed along with its motion on Wednesday — Nike’s lawyers called the subpoena “broad, ambiguous and unduly burdensome.” The subpoena seeks some information dating to 2018, including details about a range of mentorship and internship programs and the scope of 2024 layoffs.

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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