A heated debate has erupted between state attorneys general over Costco's commitment to diversity, equity, and inclusion (DEI) practices. Nineteen Republican attorneys general recently penned a letter to Costco, urging the company to cease what they termed "discriminatory" DEI policies. They argue these policies promote unlawful discrimination. Washington State Attorney General Nick Brown, a Democrat, countered this assertion, defending Costco's right to implement policies that support and enhance its workforce. He criticized his Republican counterparts for what he sees as government overreach into private business decisions.
Leading the charge against Costco's DEI policies are Iowa Attorney General Brenna Bird and Kansas Attorney General Kris Kobach. Bird expressed concerns about Costco's public statements and demanded evidence of compliance with federal and state laws regarding hiring practices. She cited other major retailers that have revised their DEI policies and pointed to President Trump's executive order targeting DEI practices within the federal government as a model for the private sector.
The Republican attorneys general gave Costco 30 days to respond to their letter. This action follows President Trump's recent executive order aimed at eliminating DEI practices within the federal government and encouraging similar action in the private sector.
Costco, however, remains steadfast in its support of DEI, asserting these values are integral to its business success. Costco Board Chair Hamilton "Tony" E. James emphasized the importance of inclusivity for their employees and the positive impact it has on customer interactions. Costco shareholders recently rejected a proposal by a conservative group to assess the potential risks of DEI policies to the company's profitability.
Constitutional law attorney Jonathan Turley weighed in on the debate, highlighting the right of businesses to make independent employment decisions within legal boundaries, including DEI training. He cautioned state attorneys general to consider the free speech rights of corporations. Other state attorneys general have also expressed their opinions, with some supporting President Trump's stance and others defending Costco's DEI initiatives. The debate continues, with Attorney General Bird reiterating her commitment to holding companies accountable for what she considers illegal and discriminatory policies.
