New England Biz Law Update
A Black former IBM executive has filed a federal lawsuit against the company, alleging that she was wrongfully terminated – along with several other Black leaders – as part of IBM’s attempt to comply with President Donald Trump’s 2020 executive order restricting diversity, equity, and inclusion (DEI) initiatives among federal contractors.
The complaint, filed in Maryland, claims that IBM targeted Black executives for termination to avoid scrutiny and preserve lucrative government contracts.
The plaintiff, a highly rated senior leader with no history of discipline, claims that she was replaced by a less-experienced Asian employee. She further says that five of the seven Black executives in her division were also let go under similar circumstances.
The lawsuit alleges violations of Title VII of the Civil Rights Act and §1981, which prohibit race-based discrimination in employment and contracting.
The case comes in the wake of other recent legal challenges to corporate DEI practices – including claims of reverse discrimination by white male employees – and underscores how sensitive such programs have become in the current political and legal climate.
For employers, it’s important to be aware that corporate responses to government mandates or executive orders, even if intended to protect contracts, can create exposure to a lawsuit if they result in adverse action against protected groups.
Employers should ensure that all employment decisions, especially terminations and leadership changes, are well-documented and based on consistent, non-discriminatory criteria.
Whether expanding or scaling back, companies must carefully assess how DEI-related decisions may affect employees of all backgrounds and think ahead about protecting the company from legal scrutiny.
