American Airlines has agreed to abandon its diversity, equity and inclusion (DEI) hiring policies after a legal complaint alleged the company violated federal anti-discrimination laws. The announcement came following an investigation by the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP), which found evidence of non-compliance.
The investigation was prompted by a complaint from America First Legal (AFL), which accused American Airlines of prioritizing DEI quotas over merit-based hiring. The airline admitted its practices conflicted with federal laws protecting equal employment opportunities under Executive Order 11246, which prohibits discrimination based on race, color, religion, sex, or national origin.
“American companies must return to using merit — not the desire to check a DEI box — to select the most skilled and qualified employees,” said Will Scolinos, counsel for AFL. He called the decision a significant victory in the fight against what AFL described as illegal discrimination in hiring practices.
The complaint highlighted American Airlines’ participation in federal contracts valued at $140 million since 2008. To qualify for such contracts, the airline was required to adhere to federal equal opportunity regulations. However, the OFCCP investigation revealed that the company’s DEI policies contradicted these obligations, including in its Cadet Academy program and promotional practices.
Following the investigation, American Airlines agreed to eliminate discriminatory hiring and promotion practices. AFL also called for similar investigations into United Airlines and Southwest Airlines, which subsequently agreed to abandon race and gender-based hiring quotas. Together, these three airlines manage about half of all US airline traffic.
AFL noted this decision reflects a broader pushback against corporate DEI mandates. A recent federal court ruling overturned NASDAQ’s DEI requirements for member company boards, signaling growing resistance to such policies across corporate America.
