Diversity & Inclusion HR and Management Advice HR Compliance & Labor Laws

What’s Still Legal? What’s Still Smart? A DEI Reality Check for HR in 2025

What’s Still Legal? What’s Still Smart? A DEI Reality Check for HR in 2025

There’s a lot of fear, confusion, and second-guessing around DEI efforts right now—and HR teams are stuck navigating it all. The legal landscape is shifting, the headlines are loud, and everyone seems to have a different opinion on what’s allowed.

In a recent HR HotSpot webinar, employment attorney Aaron Goldstein, a partner at Dorsey & Whitney LLP, joined Verstela’s Chief Strategy Officer, Jenifer Lambert, for a conversation that cut through the noise. Rather than add to the confusion, Aaron helped HR professionals get clear on what’s changing, what’s not, and how to move forward with more confidence and care.

What’s happening now?

Much of the current anxiety stems from headlines and political messaging—not actual changes in the law. Aaron emphasized that while some companies are scaling back or “rebranding” their DEI programs, very few legal decisions have invalidated these efforts.

That said, the Supreme Court’s 2023 decision on affirmative action in higher education has caused ripple effects. While the ruling doesn’t apply directly to private employers, it has emboldened critics of DEI and left HR teams questioning what’s legally sound—and what might expose them to risk.

Where’s the real risk?

Aaron helped clarify that risk is real—but it’s not always where people think it is. Key legal vulnerabilities include:

  • Misalignment between messaging and practice. If your public DEI statements promise outcomes you’re not delivering—or can’t legally guarantee—you may be inviting scrutiny.
  • Reverse discrimination claims. These are increasing, especially when companies use vague or overly aggressive language around hiring goals.
  • Careless communication. Statements that imply candidates are being selected based solely on race, gender, or other protected characteristics—even if well-intended—can be misinterpreted and lead to legal challenges.

The takeaway: Intent doesn’t protect you legally—clarity does.

What HR can do

Aaron offered practical ways HR can support inclusion while staying legally grounded:

  • Audit your language. Look at internal and external DEI messaging with a critical eye. Are you overpromising? Are your words open to misinterpretation?
  • Focus on opportunity, not outcomes. DEI programs that aim to widen access and remove barriers are on stronger legal footing than those tied to specific demographic targets.
  • Partner with legal early. HR shouldn’t wait for a legal challenge to revisit their approach. Involve legal advisors as you shape programs and messaging.
  • Train for nuance. Help hiring managers and leaders talk about DEI in ways that are clear, accurate, and aligned with your organization’s values and legal obligations.

Aaron also emphasized that inclusion and belonging are still essential—and that organizations shouldn’t abandon the work. Rather, this is a moment to do it with even more thought, precision, and intention.

Keep the conversation going

This session echoed a theme we explored in Normalizing and Humanizing Performance Management: HR work lives in the gray area. It requires empathy, clarity, and the courage to lead through uncertainty.

As Aaron put it, “Now is the time to be precise. You can still do the work—but you have to do it thoughtfully and intentionally.”

Watch the full conversation

This summary only scratches the surface. If you’re facing questions, pressure, or uncertainty about your organization’s DEI efforts, we encourage you to watch the full webinar below. Aaron shares even more insights on legal risk, policy development, and how HR can lead with both care and compliance in mind.

This session is approved for HRCI and SHRM recertification credits.

 

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