IBM Corp.’s Diversity Policies Face Legal Scrutiny by America First Legal Group

Former Trump adviser Stephen Miller’s legal group, America First Legal (AFL), has called for an investigation into IBM Corp.’s diversity-focused employment and executive pay policies. AFL claims these policies constitute illegal sex and race discrimination.

The AFL organization submitted a letter to the Equal Employment Opportunity Commission (EEOC) outlining its concerns. The letter highlighted statements made by IBM’s CEO Arvind Krishna and Red Hat Inc.’s CEO Paul Cormier. These comments link executive pay with progress in diversity, equity, and inclusion initiatives, which AFL argues breach Title VII of the Civil Rights Act of 1964.

This complaint contributes to a mounting number of inquiries directed at high-profile corporations by AFL. However, the EEOC has not yet responded to allegations that corporate diversity, equity, and inclusion (DEI) initiatives contravene Title VII’s prohibition on race discrimination.

Miller’s America First Legal (AFL) continues to challenge policies covering a spectrum of issues, from immigration to LGBTQ+ rights to DEI. AFL’s work is regarded by many as helping to set legal strategies for a potential second Trump administration.

IBM and Red Hat’s leadership have not yet responded to AFL’s request for the EEOC to file a “commissioner charge” against them. While the commission charge is a less common approach used by employees or applicants to levy discrimination allegations, it saw a spike from three in 2021 to 29 in fiscal year 2022.

The complaint against IBM Corp. also raised red flags about IBM’s 2022 ESG report, pointing out an “annual incentive program” aiming to “continue to include a diversity modifier.” AFL contends this practice reveals IBM’s illegal use of quotas.

IBM, at the time of writing, has not provided a response to the request for comment on these allegations.

The AFL has also issued a separate letter to IBM’s Board of Directors. This correspondence addresses their fiduciary responsibilities and concerns over potential waste of corporate assets to advance what AFL identifies as an “illegal, racially discriminatory agenda.”

This ongoing story serves to highlight the nuanced, and at times contentious, intersection of corporate DEI initiatives and the legal parameters of employment and executive compensation policy.