Texas Roadhouse hit with discrimination civil rights criticism for DEI hiring practices

A conservative authorized group has launched a civil rights criticism in opposition to the Texas Roadhouse restaurant chain, alleging it illegally discriminates through the use of Variety, Fairness and Inclusion (DEI), gender and racial demographic standards in its hiring practices.

The criticism, filed with the Equal Employment Alternative Fee by America First Authorized (AFL), accused Texas Roadhouse of utilizing race and gender as components in figuring out who ought to be appointed to its Board of Administrators, monitoring staff’ race, gender and ethnicity, in addition to working “reputational danger” to its enterprise on account of its DEI insurance policies. AFL is alleging that Texas Roadhouse is in violation of the Civil Rights Act of 1964.

“The proof demonstrates that the Firm’s hiring, promotion, and recruitment practices violate state and federal regulation. The proof additionally demonstrates that the Firm has prioritized illegal variety, fairness, and inclusion packages and insurance policies over shareholder worth,” the criticism alleged.

Texas Roadhouse wrote that it’s dedicated to “attracting, retaining, participating, recognizing, and growing a workforce that mirrors the variety of our company” and supplied a chart breaking down the chances of their staff and managers who have been both ladies or individuals of coloration in its 2024 10-Okay annual report.

The AFL submitting additionally stated that, due to elevated stress from the federal government and traders to reveal its Environmental, Social, and Governance (ESG) targets, together with targets associated to variety and inclusion efforts, the restaurant chain is exposing itself to reputational danger in addition to the specter of potential litigation.

The criticism accuses Texas Roadhouse of appearing with an “inappropriate disregard of your fiduciary duties to Texas Roadhouse and its shareholders.”

Based on the Texas Roadhouse 2024 sustainability report, the corporate takes DEI components similar to gender and race into consideration when figuring out nominees to its Board of Administrators, together with different components similar to Board expertise and monetary acumen.

The report additionally touts skilled growth packages geared in direction of id, together with a Girls’s Management Summit and African American Management Summit.

“Texas Roadhouse’s insurance policies are a relic of an period the place DEI contaminated American tradition with the false perception that good intentions make discrimination okay,” America First Authorized Counsel Will Scolinos advised Fox Information Digital in a press release. 

Variety, Fairness and Inclusion initiatives have been in retreat in company America since President Donald Trump returned to workplace.

Trump signed a flurry of govt orders concentrating on “unlawful DEI” beginning on his first day again within the Oval Workplace, which banned federal companies from contracting with corporations that have interaction in DEI insurance policies.

Firms like Disney, Paramount and Fb have all rolled again or eradicated their DEI packages.

Different corporations, similar to Costco and Apple, have resisted activist shareholder stress to reform or remove their DEI initiatives. 

Cracker Barrel, one other restaurant chain, can also be dealing with an AFL civil rights criticism over its DEI insurance policies.

The criticism alleged that Cracker Barrel’s “Enterprise Useful resource Teams” discriminate on the idea of race and intercourse by solely providing employment advantages to employees who match sure demographic standards. 

Texas Roadhouse didn’t reply to Fox Information Digital’s request for remark.