The EEOC’s Sex Discrimination Lawsuit Against Coca-Cola Beverages Northeast and Its Implication for Employers and DEI Initiatives 

On February 17, 2026, the Equal Employment Opportunity Commission (EEOC) filed a lawsuit in the United States District Court for the District of New Hampshire against Coca-Cola Beverages Northeast, Inc. (Coca-Cola) under Title VII of the Civil Rights Act of 1994. In its lawsuit, the EEOC alleges that Coca-Cola discriminated against male employees on the basis of sex when Coca-Cola held a two-day female employee-only networking event that excluded male employees.

The EEOC’s lawsuit underscores the agency’s enforcement priorities under the Trump administration to target “illegal DEI” practices in employment.

Background on Federal Enforcement Efforts Targeting DEI

In January 2025, President Donald Trump issued Executive Order 14173, titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” which marked a significant shift in federal DEI (Diversity, Equity and Inclusion) policy. This order explicitly revoked Executive Order 11246, which historically mandated federal contractors to develop Affirmative Action Plans (AAPs) and promote equal employment opportunity. The E.O. also directed federal agencies to combat what it termed “illegal” private-sector DEI preferences, policies and programs, emphasizing enforcement strategies against perceived unlawful practices.

Since E.O. 14173, the Department of Justice (DOJ) and the EEOC have issued enforcement guidance targeting what they describe as “illegal DEI” efforts, focusing heavily on race- and sex-based discrimination under Title VII. Most notably, the EEOC’s March 2025 guidance clarifies that employment actions motivated “in whole or in part” by protected characteristics, such as race or sex, constitute unlawful disparate treatment.

This broad interpretation stresses that the consideration of protected traits in employment is problematic under current federal guidance, signaling a heightened scrutiny of DEI initiatives. Federal agency guidance emphasizes that any employment action—hiring, firing, promotions or even participation in employer-sponsored activities—that is influenced by a protected characteristic could be deemed unlawful discrimination, regardless of the employer’s intent.

EEOC v. Coca-Cola Allegations

The lawsuit against Coca-Cola exemplifies the federal government’s enforcement priorities in action. According to the EEOC’s complaint, in September 2024, Coca-Cola hosted a two-day employer-sponsored event at the Mohegan Sun Casino and Resort in Connecticut. The company invited only female employees to participate in this event, which included a networking component, speakers and team-building exercises as well as recreational activities. Coca-Cola explicitly excluded male employees from the invitation. The EEOC alleges that Coca-Cola not only invited women but also excused female employees from their regular work duties on September 10 and 11, 2024, and paid them their usual wages without requiring them to use vacation or paid time off.

According to the EEOC, Coca-Cola’s female-only networking event subjected male employees to discrimination on the basis of sex with respect to their compensation and the terms, conditions or privileges of employment.

Employer Takeaways

The EEOC’s position is clear: under Title VII of the Civil Rights Act of 1964, excluding employees from participation in employer-sponsored events on the basis of a protected characteristic constitutes unlawful discrimination. The agency emphasizes that employment decisions motivated by sex—even if not explicitly discriminatory—are unlawful if sex is a factor in the decision-making process.

The EEOC’s lawsuit highlights that even well-intentioned employer activities can run afoul of federal law if they exclude certain groups based on protected characteristics. This case signals a broader federal stance that all employment-related activities must be carefully scrutinized to avoid discrimination claims, especially as the Trump administration’s EEOC and DOJ intensify their enforcement efforts against “illegal DEI.”

Given the evolving legal and regulatory environment, employers should take proactive steps to ensure compliance and mitigate legal risks:

Continue to conduct comprehensive audits DEI initiatives

Employers should regularly review all DEI policies, programs and activities—such as recruitment campaigns, employee events, training sessions and promotional practices—to identify and rectify any practices that could be construed as discriminatory. This includes scrutinizing the composition of invitee lists for events, the criteria used for promotions and the language used in policies to ensure they do not inadvertently favor or exclude certain protected groups.

Seek expert guidance

Buchanan’s Labor and Employment team is available to assist clients in evaluating their DEI efforts, ensuring they align with current legal standards, and avoiding practices that could be challenged under federal guidance or result in litigation. The landscape remains complex and rapidly changing. Employers are encouraged to stay informed and consult Buchanan’s professionals to navigate these developments effectively.