American Airlines (AA) announced it will discontinue diversity, equity and inclusion (DEI) hiring policies after admitting these practices violated federal laws ensuring equal employment opportunities. The decision comes after a complaint filed by America First Legal (AFL), which accused the airline of discriminatory hiring practices.
The U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) confirmed the decision. AFL counsel Will Scolinos stated, “American companies must return to using merit — not the desire to check a DEI box — to select the most skilled and qualified employees.”
AFL’s complaint highlighted that AA, a recipient of $140 million in federal contracts since 2008, was not complying with Executive Order 11246. This regulation prohibits employment discrimination based on race, color, religion, sex, or national origin. Federal contractors are required to follow these rules, but the investigation revealed AA’s hiring and promotional practices were in violation.
The OFCCP’s investigation, launched on Dec. 13, involved interviews with AA representatives and an assessment of company records. Findings showed that AA had failed to meet federal equal opportunity requirements, prompting a compliance conference to address the violations. The airline subsequently agreed to end DEI practices that relied on race and gender quotas.
AFL has called for similar investigations into United Airlines and Southwest Airlines, which, along with AA, control nearly half of U.S. air traffic. The OFCCP confirmed that these airlines have also agreed to abandon policies establishing hiring quotas based on race or sex.
AFL emphasized that companies benefiting from federal contracts must adhere to anti-discrimination laws. A recent federal court ruling striking down NASDAQ’s DEI mandates for corporate boards highlights a growing rejection of such policies in the corporate world.
