TL;DR: DEI remains legal. In this rapid briefing, HR Acuity CEO Deb Muller and employment attorney Jon Hyman explain that quotas are still banned, but inclusive programs are not. Political fearmongering is driving some companies to retreat from their DE&I efforts, yet organizations that stay committed—like Costco—are seeing business upsides.
Three Key Takeaways from the Video: DEI in Employee Relations
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DE&I Is Still Lawful
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Inclusive initiatives are as legal today as before the change in administration. Only quotas and protected-class preferences are prohibited.
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Fear, Not Law, Drives Pullbacks
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Government rhetoric has created a false sense of legal peril. Employers that retreat risk backlash while those that double down build trust and brand strength.
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Choose Your Path and Commit
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Decide if DEI is core to your mission. If it is, communicate its value, invest in it and lead with confidence instead of shrinking under external pressure.
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Video Transcript
Prefer reading to watching? Dive into the full conversation between HR Acuity CEO Deb Muller and Wickens Herzer Panza’s Jon Hyman.
[0:12] Deb: Hi everyone, it’s Deb Muller. I’m back with another Two Minute Matters and I’m really excited because my co-star Jon Hyman is here with me.
[0:22] Deb: For anyone who doesn’t know Jon, he’s a shareholder at Wickens Herzer Panza and prolific on LinkedIn in the ER space, sparking great conversation.
[0:33] Deb: Yesterday Jon hosted an HR Acuity webinar on the first 100 days and misconceptions about DEI—something we’re all navigating under the new administration. I asked him to give us a quick two-minute overview. The webinar link is below. Jon, thanks for joining.
[1:02] Jon: Thanks for having me, both on the webinar and today. Yesterday’s session was terrific and I enjoyed sharing where we are in the DEI space.
[1:12] Deb: One rule—I need to start the timer. If you haven’t joined our webinars, please do. Clock is running—can you tackle DEI in two minutes? Go.
[1:23] Jon: Challenge accepted. The biggest takeaway is that DEI is not a four-letter word or something employers should fear. The Trump administration has tried to demonize DEI and make everyone think it’s unlawful, but that isn’t true.
[1:39] Jon: DEI as a philosophy is just as legal today as it was on January 19 before Trump’s second term. What was illegal then—preferences and quotas based on a protected class—remains illegal now.
[1:55] Jon: What has changed is the administration pushing DEI to the forefront and creating a culture of fear so employers think they’ll be targeted if they keep DEI central.
[2:07] Jon: Employers now fall into two camps. Costco dug in—“DEI is central to our mission, it’s who we are and we’re not backing down.” Target pulled back—eliminated its chief diversity officer, closed its DEI office and removed Black-focused and Pride merchandise.
[2:33] Jon: The public noticed. Costco’s stand is helping its business, Target’s retreat is hurting.
[2:44] Jon: Bottom line: decide who you are as an employer. If DEI matters, take a stand, double down and lead rather than cower under federal pressure.
[3:01] Deb: Well said—even if it took a bit more than two minutes it was worth it. Catch the full webinar for details.
[3:17] Deb: It will be interesting to see the business impact: Costco is thriving, Target’s earnings are down so it’s off my weekend shopping route.
[3:28] Deb: Thank you so much, Jon. I know this won’t be the last time. Thanks everyone for tuning in—check the recording and we’ll see you next time. Bye.
