Micah Jonah
January 31, 2026
The United States Federal Trade Commission (FTC) has issued warnings to 42 law firms over their diversity, equity and inclusion (DEI) hiring practices, cautioning that such arrangements could be unfair, anticompetitive.
In a statement on Friday, the FTC said it had written to the firms to express concerns that agreements tied to DEI hiring metrics may distort competition within the legal profession, particularly in areas such as recruitment, pay and promotions.
The warning comes amid a broader policy shift under the administration of President Donald Trump, which has rolled back DEI programmes across federal agencies, increased scrutiny of similar initiatives in the private sector.
According to the FTC, all 42 law firms participated in a programme overseen by consultancy Diversity Lab, which promotes gender and racial representation within law firm leadership and recruitment pipelines.
The commission noted that while diversity initiatives are widespread, collective commitments by firms to meet specific employment benchmarks could raise competition concerns under federal law.
The White House declined to comment directly on the matter, referring enquiries to the FTC. Representatives of the affected law firms did not immediately respond to requests for comment.
The FTC said it would continue to monitor hiring practices across the legal sector to ensure compliance with competition and employment laws.
