McDonald’s is in legal trouble as a group opposed to affirmative action has challenged the longstanding scholarship program of the company for Hispanics and Latinos students.
Edward Blum and the American Alliance for Equal Rights filed a lawsuit at federal court in Nashville.
The group claims that HACER’s National Scholarships Program is discriminatory against white students and other ethnicities, in violation of federal civil rights laws.
This case highlights the growing tensions surrounding corporate diversity in an ever-changing legal and cultural environment.
McDonald’s legal arguments
This lawsuit focuses on McDonald’s HACER National Scholarships Program eligibility requirements, which require applicants to at least have one parent with Hispanic heritage.
The program was established in 1985 and has since provided more than $33 millions in scholarship awards, with some recipients receiving up to $100,000 per year.
Blum’s group asserts that racial eligibility violates Section 1981 of 1866 Civil Rights Act, which forbids bias against race in contracts.
The plaintiff is a high school white student from Arkansas who claims that this program excludes unfairly students of non-Hispanic background, even if they are also facing financial difficulties.
The group wants an injunction that would stop the program and make it available to all students who are economically disadvantaged, regardless of their ethnicity. Blum said,
We hope McDonald’s will reconsider its policy to provide equal opportunity for all students.
Diversity in the workplace
McDonald’s legal troubles come as corporate America reassesses diversity initiatives to respond to an evolving regulatory and legal climate.
McDonald’s has announced significant changes in its diversity strategy, which include the retirement of its Corporate Leadership Diversity Goals.
These adjustments were a result of “a changing legal landscape” within the United States.
The changes come in response to recent legal and political challenges, such as the US Supreme Court decision banning race-conscious admissions to higher education.
This ruling had an impact across all industries. Businesses were forced to review their race-based policies to reduce legal risk.
The lawsuit for McDonald’s raises concerns about corporate initiatives that address systemic inequality.
What’s the stake for McDonald’s?
McDonald’s, as well as other companies, could be affected by the outcome of this lawsuit, especially if they are navigating diversity, equity and inclusion efforts.
McDonald’s has not made any public comments about its scholarship program’s potential impact while it is reviewing the complaint.
Experts in law suggest that, if the American Alliance for Equal Rights wins, the case could create a precedent forcing companies to reconsider or eliminate programs that are based on race.
A ruling in favor of McDonald’s would reaffirm that targeted initiatives to support underrepresented groups are legal.
The post McDonald’s Latino Scholarships: Why are they being sued? This post may be updated as new information unfolds
