The United States Equal Employment Opportunity Commission (EEOC) reported this Wednesday (4) that it has opened an investigation against Nike, the sporting goods giant, for policies that, according to the agency, discriminated against white workers.
The commission — created under the Civil Rights Act to enforce laws against employment discrimination — said it is investigating “systemic allegations of intentional racial discrimination related to DEI (diversity, equity, and inclusion)” against white employees and candidates at Nike.
The investigation is the first major legal action announced by the commission under Andrea Lucas, its president, who since taking office last year has focused on diversity, equity and inclusion programs. In a recent interview, she said that “it is clear that I have priorities to address discrimination based on race and sex arising from DEI.”
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The action against Nike is a high-impact warning — and should likely send a message to other companies that have adopted DEI-related initiatives and hiring practices.
The investigation, conducted by the commission’s St. Louis office, became public on Wednesday when the EEOC filed a request in federal court in Missouri to compel Nike to comply with a subpoena issued in September.
According to documents filed with the court along with the request, Lucas filed a discrimination complaint against Nike in 2024, when she was still a commissioner of the EEOC, which then had a Democratic majority. According to the agency’s petition, Nike has contested the subpoena and only partially responded to requests for information.
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“The EEOC seeks information directly relevant to allegations that Nike subjected white employees, applicants, and training program participants to unequal treatment based on race in various employment decisions, including layoffs, internship and mentoring programs, leadership development, and other career development programs,” the commission said in the order filed Wednesday.
Nike did not respond to requests for comment.
The scrutiny comes at a difficult time for Nike. The world’s largest sports apparel company is trying to recover after strategic missteps in recent years left it in a prolonged period of weak sales. Management has worked to reduce old inventory, accelerate product development and keep the brand focused on sports and athletes.
In 2021, Nike unveiled a five-year plan to have a more diverse workforce. Management tied part of executive compensation to diversity goals, which included a greater presence of women in leadership positions and the goal of achieving 35% representation of racial minorities in its U.S. workforce.
“Bringing Nike’s mission to life starts with our people and creating a workforce that represents diverse backgrounds, experiences and perspectives,” says the company’s website.
Last year, Nike did not publish its corporate sustainability report — which typically comes out around March and includes updates on diversity goals. At the time, the company stated that it remained committed to these goals.
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In the most recent report, for fiscal year 2023, Nike said it has doubled investments in professional development programs for minorities in the United States. The company also launched a program to attract a more diverse set of suppliers, which accounted for more than $1 billion in spending that year.
Last week, in response to the subpoena — attached by the agency to the request filed this Wednesday — Nike lawyers called the subpoena “broad, ambiguous and excessively burdensome.”
Nike underwent a reorganization in 2024, replacing its CEO amid declining sales. Elliott Hill, who came out of retirement to take the helm, redesigned the organizational structure and changed many senior executives.
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Nike has made progress in its turnaround effort under Hill. Sales rose 1% in the last quarter, driven by a recovery in business in North America. Despite this, in December executives said they expected global revenue to fall this quarter, given the prospect of continued weak sales in China — a crucial market for sneakers and sporting goods.
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