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1 onedigital.com DEI STRATEGIES FOR EMPLOYERS Applies to: All Employers Eective: February 13, 2025 D U E L I N G D E I G U I D A N C E Diversity, Equity, and Inclusion (DEI) remains a scrunized topic following the focus of Execuve Order 14173 on “illegal” DEI acvies. Employers are reminded to comply with federal an-discriminaon laws, such as Title VII of the Civil Rights Act of 1964 and the Americans with Disabilies Act (ADA), as well as comparable state and local laws. Generally, employers cannot discriminate against employees and applicants on the basis of any protected characteriscs. In response to the Execuve Order, 16 state Aorneys General issued Mul-State Guidance Concerning Diversity, Equity, Inclusion, and Accessibility Employment Iniaves. Specically, Massachuses, Illinois, Arizona, California, Conneccut, Delaware, Hawaii, Maine, Maryland, Minnesota, Nevada, New Jersey, New York, Oregon, Rhode Island, and Vermont seek to highlight “the connued viability and important role of diversity, equity, inclusion, and accessibility eorts … in creang and maintaining legally compliant and thriving workplaces.” The Guidance states that “[p]olicies and pracces that promote diversity, equity, inclusion, and accessibility are not the same as preferences in individual hiring and promoon decisions that have been found to be unlawful.” “Instead, modern best pracces focus on ensuring that businesses can recruit, hire, and retain the most qualied employees, and ensure that no one is overlooked or bypassed because of a protected characterisc.” The Guidance highlights the signicance of using DEI strategies to promote business success and reduce the potenal for discriminaon claims. A research study showed “companies in the top quarle for diversity were 35% more likely to have nancial gains above their respecve industry median.” In stark contrast, an employer’s “[failure] to implement adequate non-discriminaon and fair employment policies, procedures, and trainings may be used by [state] oces or courts to assess culpability and liability for discriminatory conduct.” The Guidance provides examples of permissible DEI acvies in recruitment and hiring, professional development and retenon, and assessment and integraon. Sald;kjf EMP LOY ER I N S I GHT Q U I C K L O O K • 16 state Attorneys General issued guidance on permissible DEI practices. • DEI acvies that comply with an-discriminaon laws are permissible

2 onedigital.com W H A T D E I S T R A T E G I E S C A N E M P L O Y E R S L E V E R A G E ? Despite the divergent characterizaon of DEI acvies, one thing remains clear – DEI acvies that comply with an-discriminaon laws are permissible. Moreover, DEI strategies can be benecial for employers to enhance the employee experience and improve their business’s overall success. Employers may queson what steps can be taken to promote fairness and an-discriminaon principles in the workplace. Employers should rst idenfy their overall business goals in order to appropriately select and implement strategies to meet those goals. Below are recommended strategies that employers can leverage to deepen impact. DEI strategies may be scaled up or down depending on an organizaon’s mission, goals, resources, and overall needs. Strategies Results A Deeper Dive Expand applicant pool through job posng strategies and recruing opportunies. Look for opportunies to post job openings in locaons with diverse communies, members, and visitors, such as community billboards, industry publicaons, educaonal instuons, and job fairs. Build relaonships with organizaons and instuons that promote and engage diverse populaons that will expand the overall applicant pool. Creang opportunies to reach larger applicant pools means more choices for an employer to nd the best talent for the posion. A broader, more inclusive applicant pipeline drives innovaon, strengthens decision-making, and improves organizaonal performance. It also enhances an employer’s brand, increases employee engagement, and ensures fair hiring pracces. Evaluate job posng language for a descripon that meets employer needs and is broad enough to capture a large applicant pool, while maintaining focus on the relevant skills and experience required for the posion. Use mul-layered interview processes, including a hiring panel, to reduce the opportunity for hiring based on discriminatory talent aracon biases. Provide training on manager skills. Managers must develop and hone the skills needed to make them successful in their roles, including through training on topics like inclusive communicaon techniques, emoonal intelligence, professional equee, eecve feedback techniques, managing a hybrid environment, and employee development. A supporve environment for employees to contribute their ideas promotes team relaonships and investment in the work itself. Mulple voices contribung to the discussion enhances results and innovaon by including ideas that may not have been considered otherwise. Provide all employees with communicaon skills, collaboraon skills, and conict management training. Giving employees the tools to improve co-worker relaons can minimize negave or unproducve impacts from conict in the workplace. Evaluate pay structures for transparent pracces and compliance with equal pay laws. Employers are required to provide equal pay to employees and cannot pay employees less on the basis of their protected category status. Having clear and widely communicated pracces related to compensaon improves consistency of Employees who feel they are being treated fairly are more likely to remain in their employment, causing less disrupon to employers who must hire and train new workers due to higher turnover. Audit pay pracces, and create a compensaon philosophy to ensure fair, transparent, and compeve pay that aracts, retains, and movates high-performing talent while aligning with organizaonal values and goals. Set pay rates that are applicable to job requirements and not based on historical pay in previous employment. Create job levels

3 onedigital.com Strategies Results A Deeper Dive applicaon and greater understanding by employees. consistent with pay levels to facilitate equal pay with parity in hiring and promoon. Facilitate workplace culture opportunies for connecon. Allow employees to use organizaon spaces, digital and/or physical, to connect on common interests, such as through employee resource groups. Employee resource groups (ERGs) can foster connecon and collaboraon among workers. ERGs are open for all employees to join, whether they have long had a connecon to the topic or are interested in learning more about or supporng their co-workers. Create a culture commiee to idenfy gaps and opportunies for employee connecon, visibility, and support. Evaluate employer policies for consistency with the organizaon’s culture goals and vision. Implement mentor programs. Recruit and train voluntary mentors for programs that pair experienced workers with those who are less experienced, giving all employees the opportunity to build relaonships with organizaonal leaders or collaborate with more experienced professionals. A mentor program provides employees with the opportunity to broaden their knowledge about organizaonal needs, develop their professional perspecve and skills, and improve their overall work performance. Successful parcipants may beer understand how to transion into larger promoonal and growth opportunies within the organizaon. Implement a leadership training program that is specically focused on developing talent within the organizaon. Leadership programs should have nondiscriminatory selecon criteria and parcipant evaluaons. Stay Informed. Stay Compliant . Stay Ahead. Workplace regulations are evolving, and the decisions made in Washington could directly impact your business. OneDigital’s team of HR, insurance and workforce compliance consultants are tracking key legislative and regulatory developme nts so you don’t have to. Get the latest insights on pending changes in healthcare, benefits, HR compliance, and workforce policies—so you can plan with confidence. Visit the OneDigital Hub: 2025 Federal Updates for Employers for more, or connect directly with our team of HR and workforce consultants.