Conservative legal organizations have filed a civil rights complaint against Texas Roadhouse, alleging that the restaurant chain is engaging in illegal discrimination based on diversity, equity, and inclusion (DEI) standards, as well as gender and racial demographics in their hiring practices.
The complaint, submitted to the Employment Opportunity Committee by the American First Legal (AFL), accuses Texas Roadhouse of monitoring who gets appointed to the board, along with the race, gender, and ethnicity of its employees. It suggests that these factors are used to assess “reputable risk” to the company due to its DEI policies. According to the AFL, this contravenes the Civil Rights Act of 1964.
“The evidence shows that our hiring, promotion, and employment practices are in violation of both state and federal laws. It also suggests that the company places illegal DEI programs and policies above shareholder interests,” the complaint states.
In response, Texas Roadhouse expressed its dedication to building and maintaining a diverse workforce that reflects its customer base, even providing a breakdown of the proportion of women and people of color in management for 2024 in its documents.
The AFL’s filing further states that restaurant chains could face reputational risks and legal challenges due to mounting pressure from both the government and investors to disclose their environmental, social, and governance (ESG) goals, particularly those concerning diversity and inclusion initiatives.
The complaint also accuses Texas Roadhouse of neglecting its fiduciary duties to the company and its shareholders.
According to the 2024 Sustainability Report from Texas Roadhouse, DEI considerations like gender and race are factored in when choosing candidates for board positions, alongside experience and financial expertise.
This report also highlights professional development programs aimed at various identities, such as the Women’s Leadership Summit and the African American Leadership Summit.
Will Scolinos, a lawyer, remarked that Texas Roadhouse’s approach harkens back to an outdated mindset that wrongly believes goodwill can make discrimination acceptable. Since Donald Trump’s presidency, there’s been a noticeable decline in corporate America’s efforts toward diversity and inclusion.
During his administration, Trump issued several executive orders targeting what he termed “illegal DEIs” from his first day in office.
Several companies, including Disney, Paramount, and Facebook, have either scaled back or entirely eliminated their DEI programs, while others like Costco and Apple are standing firm against pressure from activist shareholders to change or do away with such initiatives.
In a similar vein, Cracker Barrel is also facing civil rights complaints from the AFL concerning its DEI policies.
The complaint alleges that Cracker Barrel’s “business resource group” discriminates based on race and gender by granting employment benefits exclusively to employees who meet certain demographic criteria.
Texas Roadhouse has not yet commented on this situation.
