FTC Issues Warning to Law Firms Regarding DEI Hiring Practices

On Friday, the U.S. Federal Trade Commission (FTC) issued warnings to 42 law firms regarding their diversity, equity, and inclusion (DEI) hiring practices, labeling them as potentially unfair and anticompetitive.

Under the Trump administration, DEI-related programs within the government were dismantled, and numerous private firms have followed suit, scaling back their initiatives aimed at promoting diversity.

The FTC’s letters targeted some of the largest and most profitable law firms in the country. Notably, three firms—Paul Weiss, WilmerHale, and Perkins Coie—were previously singled out by executive orders from Trump, which threatened their business practices due to alleged discriminatory hiring methods.

Paul Weiss, along with Skadden Arps and Latham & Watkins, reached agreements with the White House to circumvent these executive orders. In exchange, they committed millions of dollars in pro bono legal work to causes supported by the administration.

The FTC’s warning also included WilmerHale and Perkins Coie, both of which successfully challenged the constitutionality of the executive orders in court last year.

Representatives from the five firms did not respond to requests for comments, while the White House referred inquiries back to the FTC.

According to the FTC, all 42 firms are involved in a program managed by Diversity Lab, which aims to enhance gender and racial employment practices within the legal field. Diversity Lab has yet to provide a comment on the situation.

Since 2017, Diversity Lab has offered a certification for law firms that ensures at least 30% of candidates for leadership roles are from underrepresented backgrounds. The organization has defended the legality of this certification, referencing a May 2025 ruling in which a federal judge determined that the program does not impose hiring quotas or other discriminatory practices.

FTC Chairman Andrew Ferguson stated that firms were cautioned that agreements among them to meet DEI metrics could distort competition for labor in the legal profession, affecting hiring decisions, pay, and promotions.

In March, the U.S. Equal Employment Opportunity Commission demanded detailed hiring data from 20 major firms, including information on applicants and whether race or gender influenced hiring decisions.

A special report by Reuters in July revealed that 46 of the 50 highest-grossing U.S. law firms during the Trump administration had either removed or modified references to diversity, equity, and inclusion on their websites.

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Talent

On Friday, the U.S. Federal Trade Commission (FTC) issued warnings to 42 law firms regarding their diversity, equity, and inclusion (DEI) hiring practices, labeling them as potentially unfair and anticompetitive.

Under the Trump administration, DEI-related programs within the government were dismantled, and numerous private firms have followed suit, scaling back their initiatives aimed at promoting diversity.

The FTC’s letters targeted some of the largest and most profitable law firms in the country. Notably, three firms—Paul Weiss, WilmerHale, and Perkins Coie—were previously singled out by executive orders from Trump, which threatened their business practices due to alleged discriminatory hiring methods.

Paul Weiss, along with Skadden Arps and Latham & Watkins, reached agreements with the White House to circumvent these executive orders. In exchange, they committed millions of dollars in pro bono legal work to causes supported by the administration.

The FTC’s warning also included WilmerHale and Perkins Coie, both of which successfully challenged the constitutionality of the executive orders in court last year.

Representatives from the five firms did not respond to requests for comments, while the White House referred inquiries back to the FTC.

According to the FTC, all 42 firms are involved in a program managed by Diversity Lab, which aims to enhance gender and racial employment practices within the legal field. Diversity Lab has yet to provide a comment on the situation.

Since 2017, Diversity Lab has offered a certification for law firms that ensures at least 30% of candidates for leadership roles are from underrepresented backgrounds. The organization has defended the legality of this certification, referencing a May 2025 ruling in which a federal judge determined that the program does not impose hiring quotas or other discriminatory practices.

FTC Chairman Andrew Ferguson stated that firms were cautioned that agreements among them to meet DEI metrics could distort competition for labor in the legal profession, affecting hiring decisions, pay, and promotions.

In March, the U.S. Equal Employment Opportunity Commission demanded detailed hiring data from 20 major firms, including information on applicants and whether race or gender influenced hiring decisions.

A special report by Reuters in July revealed that 46 of the 50 highest-grossing U.S. law firms during the Trump administration had either removed or modified references to diversity, equity, and inclusion on their websites.

Topics
Talent