Aug 13 (Reuters) - The U.S. agency that enforces laws
banning workplace discrimination has dropped a lawsuit seeking
to enforce a subpoena in an investigation of Nike's ( NKE )
treatment of white employees, saying the company has handed over
a trove of information.
U.S. District Judge Cristian Stevens in St. Louis, Missouri,
granted the U.S. Equal Employment Opportunity Commission's
motion on Thursday to dismiss the lawsuit it filed in February,
after the agency in a filing late Wednesday said Nike ( NKE ) had
complied with its subpoena.
The commission had claimed the footwear and apparel company
refused to comply with demands for information such as data on
the racial and ethnic makeup of the company's workforce and a
roster of employees chosen for mentoring and development
programs.
The EEOC said it was investigating whether Nike ( NKE )
intentionally discriminated against white employees and job
applicants, including by disproportionately targeting them for
layoffs, and that it needed the information to determine whether
Nike ( NKE ) violated the law.
Dropping the subpoena action does not mean the agency has
concluded its investigation.
Nike ( NKE ) and the EEOC did not immediately respond to requests
for comment. When the case was filed, the company called it "a
surprising and unusual escalation" of the investigation and said
it was cooperating with the commission while denying any
discrimination.
The probe is part of broader efforts by President Donald Trump,
a Republican, and his appointees to eradicate diversity, equity
and inclusion policies from the government, private sector and
higher education. Critics of DEI say such programs undermine
merit-based decision-making and can amount to reverse
discrimination against white people and men specifically.
Supporters of the policies say they expand opportunities for
historically disadvantaged groups and improve corporate
governance.
EEOC Chair Andrea Lucas has said many common workplace diversity
programs may be unlawful and that her agency would investigate
and potentially sue companies for violating laws banning
discrimination based on race, sex, religion and other protected
traits. Trump appointed Lucas to the commission in 2020 and
named her chair last year.
Commission investigations are typically prompted by
complaints filed by workers, but the Nike ( NKE ) probe stems from a
relatively rare "commissioner's charge" initiated by Lucas in
May 2024, according to court filings.