Attorneys General From 19 States Put Costco On Notice Over It’s DEI Programs

Attorneys general from 19 states have put Costco on notice for allegedly implementing unfair diversity, equity, and inclusion policies. They say these policies violate civil rights laws and warn the company to stop before a lawsuit becomes necessary.

Key Facts:

  • The AGs claim Costco’s DEI approach leads to illegal discrimination.
  • They reference Trump’s new executive order to end DEI in federal agencies.
  • Costco shareholders recently voted to keep the company’s DEI initiatives.
  • Attorneys general from states like Kansas and Iowa strongly oppose race-based hiring.

The Rest of the Story:

The joint warning involves 19 top legal officials who argue that DEI strategies often rely on race and gender factors to shape hiring and promotion decisions.

Kansas Attorney General Kris Kobach said he plans to enforce the law with vigor if any organization crosses the line into illegal discrimination.

He insists that racial preferences have no place in business practices.

Trump’s executive order, which he signed in his first week back in office, is aimed at rooting out what he views as politicized hiring.

Under this directive, attorneys general can advise on legal measures against corporations, nonprofits, and educational institutions they suspect of ignoring civil rights laws.

As a high-profile corporation, Costco has drawn significant attention for its stance on the matter.

While many well-known companies have begun scaling back DEI, Costco’s board and shareholders decided to move forward with their existing programs.

They rejected a proposal that would have required a full report on potential risks tied to DEI.

According to Costco’s board, such a study was unnecessary because the company already values respect and inclusion throughout its operations.

The stance taken by Costco caught the ire of Iowa Attorney General Brenna Bird, who accused the retailer of clinging to an outdated and possibly unlawful approach.

In contrast, Rev. Al Sharpton and the National Action Network held a “buy in” at a Harlem Costco store to show solidarity with its DEI policies.

Sharpton believes Costco’s approach can encourage fair hiring and better outreach to diverse communities.

For now, the attorneys general have demanded a response from Costco within 30 days.

They want to know if the company intends to revoke its DEI measures or justify keeping them.

In the meantime, Costco continues to say its methods are legal and designed to foster a welcoming environment for customers and employees alike.

Commentary:

We sincerely hope these state AGs go after Costco and any others still clinging to what is obviously discriminatory and illegal DEI policies.

The law is now color blind, and America is moving in a fresh direction where fairness comes first.

If Costco won’t change course, it may face legal consequences that remind everyone we do not allow discrimination under any banner.

The Bottom Line:

The clash over DEI at Costco represents a larger national debate on balancing fairness with inclusion initiatives.

Trump’s directives leave little room for what he sees as discriminatory hiring, which intensifies the pressure on companies to adjust.

How Costco resolves this standoff could shape how businesses nationwide address similar policies.

The retailer now faces a choice between holding its ground or modifying its approach to avoid legal action.

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