Iowa Attorney General Brenna Bird has pledged to explore all legal avenues to ensure Costco's compliance with state and federal laws regarding its diversity, equity, and inclusion (DEI) practices. This comes as the retail giant faces mounting pressure to abandon these practices, which have come under increasing scrutiny, especially following President Trump's efforts to dismantle DEI programs within federal agencies.
In a recent appearance on "FOX & Friends First," Bird emphasized the need for Costco to adhere to existing civil rights laws and refrain from engaging in hiring practices based on race or gender identity. She reiterated that such practices are illegal. Bird's comments follow a letter sent to Costco by 19 state attorneys general, urging the company to reconsider its DEI policies and align with the trend of moving away from such initiatives.
A Costco store in Richmond, California. (Justin Sullivan/Getty Images)
Expressing concerns about public statements made by Costco, Bird highlighted the need for the company to demonstrate its adherence to the law. She noted that other major retailers have already modified their policies in response to the changing legal landscape and urged Costco to follow suit. Reports suggesting that Costco ties executive bonuses to DEI metrics and the company head's alleged intention to continue race- and gender-based hiring have raised red flags for Bird and other critics.
The attorney general also pointed to the Costco board's recent request to shareholders to reject a proposal examining the risks associated with the company's DEI policies. This move, she argues, demonstrates a disregard for potential legal challenges based on established Supreme Court precedents and existing civil rights legislation. Bird emphasized that her office will remain vigilant and consider all available legal options if Costco fails to comply with the law.
However, Costco Board Chair Hamilton E. James has defended the company's DEI commitment, asserting that it does not compromise merit or involve quotas or preferential treatment. He maintains that Costco's focus remains on hiring and promoting the most qualified individuals to serve its members effectively.
In a letter to investors, Costco's Board of Trustees reiterated the company's commitment to DEI, emphasizing its importance in fostering a respectful and inclusive workplace. They argued that these efforts enhance the company's ability to attract and retain talent, contributing to its overall success.
With contributions from Fox News' Jamie Joseph and FOX Business' Danielle Wallace.
