Diversity-Fueled ‘Reverse’ Bias Claims Put Employers in Quandary

The Trump administration’s condemnation of some diversity and inclusion programs presents a Catch-22 for employers seeking to close baked-in pay, hiring, and promotion gaps for women and people of color, while avoiding claims of bias from White workers and men.

This clash between diversity efforts and “reverse” discrimination was recently stoked by the U.S. Labor Department’s scrutiny of Microsoft Corp. and Wells Fargo & Co. The agency asked the companies to explain how their programs to increase Black leadership don’t violate a federal civil rights law that prohibits race bias.

Attorneys said this development could make employers hesitate to ...