Rolling the dice on DEI

(Photo: Getty Images)

The lifeblood of Nevada’s economy, its casinos, could be targeted by President Donald Trump’s orders to eliminate diversity, equity, and inclusion initiatives from corporate and public life, thanks to a provision that calls for civil compliance investigations of publicly traded corporations. 

On the first day of his second term, Trump signed an executive order requiring the Office of Management and Budget to “coordinate the termination of all discriminatory programs, including DEI.”  

The next day, Trump issued an executive order prohibiting federal contractors from engaging “in workforce balancing based on race, color, sex, sexual preference, religion, or national origin.” 

That edict nullifies President Lyndon Johnson’s 1965 order establishing non-discriminatory hiring practices for federal contractors. It also imposes new requirements on grant recipients, and discourages DEI initiatives in the private sector.  

Critics contend Trump’s edicts are not only misguided, but also too vague to implement or enforce.

Last month, a federal judge agreed and put the executive orders on partial hold. On Friday, the Fourth Circuit Court of Appeals lifted the injunction, allowing the Trump administration to enforce the orders in the meantime while a lawsuit filed by the City of Baltimore proceeds.

In keeping with Trump’s order encouraging the private sector to end “DEI discrimination and preferences,” and his proclamation that America “will be woke no longer,” some corporations are pulling back on their initiatives. Others began doing so before Trump took office.

Like many of their public sector counterparts, corporate Nevada is largely hoping to keep its head down and stay out of the way of the Trump machine.

“We have not changed any of our employment policies or programs,” Wynn Resorts Chief Communication and Brand Officer Michael Weaver said via email. In 2020, Wynn Resorts, which is publicly traded, expanded its Human Rights Policy “to include specific expectations and core principles for diversity, inclusion, and non-discrimination” according to a news release. The same year, the Wynn Resorts Diversity Council drafted its first DEI policy “to codify goals that foster a culture of inclusion, embrace a diverse workforce, and develop vendor partnerships that create a fair and equal economy.”

MGM Resorts International, Nevada’s largest private employer, did not respond to requests for comment on its DEI initiatives. In 2000, MGM Resorts, which is also publicly traded, became the first casino company to launch a formal diversity initiative, according to its website. “The premise for our declaration is a simple reality: our Company is a microcosm of our world.” 

“At MGM Resorts, we know the importance of respecting each other’s differences,” says another webpage. “We endeavor to embrace and leverage those differences to achieve best-in-class experiences and cultivate stronger ties with our employees, guests, suppliers and community partners.”

Last year, shareholders in league with the National Center for Public Policy Research’s Free Enterprise Project (FEP), which works to pressure companies to drop DEI initiatives, alleged discriminatory practices by corporations including MGM Resorts. FEP alleged MGM engaged in illegal discrimination by: 

• adopting a goal of “15% procurement from Diverse Suppliers by 2025”; 
• allocating $300 million to diverse suppliers in 2022;
• and allocating resources in potentially discriminatory ways via its Supplier Diversity Mentorship Program with a goal of graduating 150 diverse owned businesses by 2025.

Publicly traded Caesars Entertainment, according to its website, maintains that its DEI initiative, established in 2017, “is not just about doing what’s right for our Team Members and society; it’s a part of how we operate our business.” The strategy “encompasses five DEI pillars: Team Members, Suppliers and Contractors, Communities, Guests and Advocacy.” 

Venetian Las Vegas and the Palazzo, formerly owned by Trump supporter Miriam Adelson and her late husband, Sheldon, are now owned by a subsidiary of Apollo Global Management. The resorts have a “strong commitment to diversity,” according to a webpage titled “Fostering Diversity, Equity, and Inclusion.” 

Ethnic minorities make up a majority of Nevada’s population. Culinary Local 226, which represents some 60,000 hospitality workers in Southern Nevada, has a diverse membership which is 55% women and 60% immigrants, according to its website.  

Union spokesperson Bethany Khan says equity provisions were written into worker contracts in 2023 when members won “career ladder language” that helps people of color “move up (or out) into other bargaining unit careers” via training through the Culinary Academy of Las Vegas, which is funded by partnering employers. 

Treasure Island, owned by Trump donor Phil Ruffin, and Trump International Las Vegas, which is owned by the president, have contracts with the union, however only Treasure Island is listed among Culinary Academy employer funding partners. 

Neither hotel mentions DEI initiatives on their websites. 

The legislation that enabled public funding for a major league baseball stadium on the Las Vegas Strip, like its football stadium counterpart, requires a community benefit agreement that must include provisions that “ensure diversity among the workforce, subcontractors and vendors used to construct and operate the Major League Baseball stadium project.”

A spokesperson for the Las Vegas Stadium Authority says Trump’s DEI order “does not apply to state and local governments that don’t receive federal funding. Therefore, the Stadium Authority is not subject to the policy.”

A spokesperson for the Clark County Department of Aviation, which operates Harry Reid International Airport, says it’s business as usual for the department’s Disadvantaged Business Enterprise programs, a U.S. Department of Transportation initiative designed to promote equal contracting opportunities to companies and “create a level playing field” in competition for contracts and concessions.  

“We haven’t been directed by the FAA or the DOT to take any action,” the spokesperson said.

Legal expert Paige Spratt of the law firm Schwabe wrote in an oped that despite the president’s “sweeping steps, Trump’s executive orders cannot eliminate the U.S. Department of Transportation’s (DOT) Disadvantaged Business Enterprise (DBE) program because it originated via Congress.”

‘Because I have common sense’

DEI initiatives, which took off following the murder of George Floyd in 2020, are rooted in the Civil Rights of 1965.

The seeds of Trump’s anti-DEI campaign are planted in Project 2025, the ultra-conservative manifesto that calls for the president to remove “diversity, equity, and inclusion, gender, gender equality, gender equity, gender awareness, gender-sensitive, abortion, reproductive health, reproductive rights, and any other term used to deprive Americans of their First Amendment rights out of every federal rule, agency regulation, contract, grant, regulation, and piece of legislation that exists.”

“Billions of dollars are spent annually on DEI, but rather than reducing bias and promoting inclusion, DEI creates and then amplifies prejudicial hostility and exacerbates interpersonal conflict,” reads a White House fact sheet on Trump’s orders. 

When an airliner collided with a military helicopter over the Potomac River days after Trump took office in January, the president, without any evidence, blamed the deaths of 67 people on former President Joe Biden’s DEI practices.

The Federal Aviation Administration, on its website, Trump said at a news conference, sought to hire people with disabilities, including “hearing, vision, missing extremities, partial paralysis, complete paralysis, epilepsy, severe intellectual disability, psychiatric disability and dwarfism.” Under the Biden administration, he said, all are “qualified for the position of a controller of airplanes pouring into our country.”

The FAA post, media outlets later reported, was online during Trump’s first term as president. 

Trump, in the same news conference, and again without evidence, pointed the finger at the pilot of the Army helicopter, identified later as a woman. 

Asked by a reporter how he could draw any conclusions absent evidence, Trump responded “Because I have common sense.” 

‘Chaos and confusion’ reign as Trump plans to freeze federal grants and loans, NV officials say

The incident illustrates the unabashed gall with which Trump has pursued his anti-DEI agenda. 

Days later Trump ordered a freeze on grants and loans related to DEI and environmental initiatives. 

Nevada Republican Gov. Joe Lombardo, at the time, characterized concerns about the impact of Trump’s freeze as “shameless political theater.” The funds, which were to be released after a federal judge issued a restraining order, have not been completely restored. 

“The Trump administration continues to freeze funding for a variety of programs across government,” Erik Jimenez, a spokesman for Nevada Treasurer Zach Conine said via email, adding the Treasury Dept. “does not have a comprehensive list of affected programs. Much of what we have seen from our end is that certain federal government agencies are simply pausing all federal grant payments altogether for particular programs. We have consistently heard that Small Business Administration grant programs, USDA programs, and EPA programs are being paused.” 

Official Nevada steeped in DEI

Government compliance with Trump’s executive orders involves “many moving parts” according to Lombardo’s spokesperson, Elizabeth Ray, who agreed to provide the Current with a full accounting of state efforts but failed to do so.

The Governor’s Office of Economic Development (GOED) has championed DEI initiatives under the leadership of Lombardo, who endorsed and was endorsed by Trump. 

Last year, the state allocated a $30 million settlement with T-Mobile for “enhancing opportunities for women, minorities, and women and minority-owned businesses,” Nevada Attorney General Aaron Ford announced at the time, adding with the “GOED-led settlement project, the agency has again demonstrated highly innovative ways to open previously closed doors for underserved communities.”

In 2021, state lawmakers approved a measure requiring all state agencies that interact with or provide programs and services affecting minority groups to designate a Diversity and Inclusion Liaison (DIL). A list posted on GOED’s website includes a DIL for every department. It’s unknown if the governor intends to eliminate the positions.  

GOED “continues to monitor policy developments and as a state agency remains committed to compliance with all applicable laws and regulations,” a spokesperson said, but would not say if the agency has altered or eliminated any initiatives.

The Governor’s Office for New Americans, created by legislation in 2019 under Gov. Steve Sisolak, seeks to “promote opportunities for immigrants, refugees and aspiring Americans to thrive in Nevada,” says the state’s website. The office did not respond to requests for comment.

Bryan Wachter, executive director of the Retail Association of Nevada, said the Association “believes that following government recommendations on business practices—when they lack the force of law—often leads to uncertainty, unintended consequences, and operational challenges.”

The Las Vegas Chamber of Commerce and the Henderson Chamber of Commerce did not respond to requests for comment.

At the municipal level, which could be subject to Trump’s orders because of federal funding, the City of Las Vegas “is currently revamping its Inclusion and Belonging Program,” says spokesman Jace Radke. “As before, the effort primarily focuses on our employees. We want to foster a workplace culture where everyone’s viewpoints are valued.”

Asked about its response to Trump’s executive orders, a spokesperson for the City of Henderson says the municipality “does not operate any affirmative action programs, nor does it use protected characteristics as a basis for preferential treatment.” 

DEI is often conflated with affirmative action, an executive order designed to correct discrimination in the past, signed by President John F. Kennedy in 1961 and thrown out by the U.S. Supreme Court in 2023. 

A spokesperson for Henderson, which has webpages dedicated to DEI, and has “earned high marks on the Human Rights Campaign’s Municipal Equality Index,” which evaluates cities and companies on their inclusiveness and services to the LGBTQ+ community, said although Trump’s executive orders are “primarily directed toward federal agencies, the City of Henderson continues to follow all applicable laws.”

Clark County officials say they don’t have a list of county DEI initiatives. “This is something we are working to capture,” a spokesperson said via email. “We do have an Office of Diversity which is focused on compliance with state and federal law.” 

The Clark County School District has 15 employees and a $2.2 million budget dedicated to DEI initiatives, reports KLAS.

Nevada’s System of Higher Education has made no “major-level policy changes” in response to Trump’s orders, a spokesperson said via email. “With new guidance being released regularly and many unknowns still remaining, NSHE is closely watching the federal landscape to determine how our institutions will be impacted and what changes may need to be made.” 

The University of Nevada Reno referred the Current to NSHE. 

The University of Nevada Las Vegas perennially ranks as having one of most diverse student bodies in the nation. UNLV’s website says the school is committed to recruiting diverse students, “represents a rich diversity of human beings,” and “is committed to aspiring to maintain a campus environment that values that diversity.”  

“The university is continuing to closely evaluate how a number of recent federal policy directives may potentially impact UNLV,” spokesman Francis McCabe said via email. 

Last week, Trump’s Department of Education’s Office of Civil Rights announced an investigation into 45 graduate programs throughout the country, including UNLV, and its alleged connections to the Ph.D. Project, “an organization that purports to provide doctoral students with insights into obtaining a Ph.D. and networking opportunities, but limits eligibility based on the race of participants,” the announcement said.       

The Ph.D. project, which is based in New Jersey, said in a statement Friday that it was complying with Trump’s anti-diversity efforts and had made the program available to anyone. 

NSHE said it is “working to understand the scope of the investigation and how to best support our institution in addressing any concerns. Our institutions play a critical role in advancing education and workforce development in Nevada, and we will continue to support their efforts while navigating federal requirements. We cannot comment further due to the ongoing investigation.”

Southern Nevada’s military claim to fame, the U.S. Air Force Thunderbirds, are not immune to the stroke of Trump’s Sharpie. The Thunderbirds’ Facebook page was temporarily shut down to accommodate Trump’s anti-DEI directives. 

“We are removing some previously published content in accordance with presidential executive orders and Department of Defense priorities,” the Thunderbird’s Public Affairs Team said via email. A directive from the Pentagon to “remove all DoD news and feature articles, photos, and videos that promote Diversity, Equity, and Inclusion (DEI)” by March 5 prompted the move. 

On Wednesday, a federal judge struck down a major tenet of Trump’s anti-DEI campaign – a ban on transgender individuals serving in the military. 

“Indeed, the cruel irony is that thousands of transgender servicemembers have sacrificed – some risking their lives – to ensure for others the very equal protection rights the Military Ban seeks to deny them,” wrote U.S. District Judge Ana Reyes.

Failure to communicate

The acronym ‘DEI’ has been villainized and weaponized, due in part to widespread misinterpretation of its meaning, say experts.

“There isn’t a uniform understanding of what diversity, equity and inclusion means,” asserts Natalie E. Norfus, founder of The Norfus Firm, which provides outsourced human resources and counsels companies on DEI initiatives. “What we are seeing is the product of DEI never really being fully defined in a shared language kind of way.” 

Norfus says anti-DEI forces focus on the acronym rather than the concepts, which she says are deeply rooted in America, a naturally diverse nation. 

“Diversity is probably the piece that’s been most controversial because it makes a lot of people in the majority feel like they’re getting pushed out. And that’s never been the intention,” she says. 

DEI policies don’t determine who gets hired. Instead, they open doors that may otherwise have been closed to diverse applicants, Norfus notes. 

“The conversation around DEI has largely addressed underrepresented diversity,” Norfus said, adding efforts to fill a void of women or people of color in leadership can unsettle others, “particularly middle-aged white men (who) feel like they’re left out and that DEI doesn’t pertain to them. But it does. It was never fully defined in a way where everybody understood what our goals were.” 

Employers, she says, universally want good talent. “The talent gene does not discriminate. Anybody from any background can be talented. When you’re recruiting, look in multiple places. Don’t just go to Harvard, don’t just go to Yale. You’re limiting yourself when you just go to the same well.”

Workplace equity, Norfus suggests, contributes to employee longevity, and to avoiding the high cost of replacing employees. 

“You want people to stay. They want to know what it takes to succeed in your workplace, but there’s not enough transparency about how people make employment decisions. Equity relates to being fair,” she says. “And no one wants to go to work and have their voice not be heard. That’s inclusion.”

To avoid running afoul of Trump’s orders, Norfus is advising clients to leave DEI out of the dialogue and tell employees “something as simple as the company cares about their experience in the workplace, and that they don’t want to get caught up in political terms.”

She’s advising clients to audit their DEI programming, and examine key employment practices for anything potentially discriminatory. 

DEI strategies can and do “bump up” against federal law, says Norfus. 

“There have been lawsuits against law firms and other places that had fellowships specifically for women, or scholarships specifically for people of color. That is discriminating in favor of a group,” she says, adding “there’s really nothing nefarious about DEI. It’s simply good business.”