- within Insolvency/Bankruptcy/Re-Structuring, Government and Public Sector topic(s)
A recent decision from the U.S. Court of Appeals for the Seventh Circuit highlights an important distinction for public employers defending challenges to DEI-related initiatives. That is, opposition to DEI does not automatically establish a viable Title VII claim, but constitutional claims may present different considerations.
Title VII Claims
In Spengler v. Cooperative Educational Service Agency 7, decided on July 8, 2026, the Seventh Circuit affirmed summary judgment against a Wisconsin public school employee who alleged she was demoted and reassigned to a lower-paying position after refusing to adopt her employer’s “equity mindset.” The employee—a white teacher—asserted claims for race discrimination and retaliation under Title VII, arguing that she opposed what she viewed as discriminatory DEI practices.
The court concluded that the record did not support her Title VII claims. According to the Seventh Circuit, the evidence showed that the employer’s expectations regarding the “equity mindset” applied to employees of all races and the plaintiff acknowledged that an employee of any race who refused to follow the framework likely would have faced the same consequences. As a result, the court found insufficient evidence that race motivated the employment decision or that the plaintiff engaged in objectively reasonable opposition to an unlawful employment practice under Title VII. Rather, according to the court, the school’s actions were based on the employee’s refusal to following the school’s instructional framework.
Constitutional Claims
The court reached a different conclusion, however, on one constitutional issue. It held that the district court should have allowed the plaintiff’s First Amendment claim to proceed. The complaint alleged that, because the employee declined to adopt or express agreement with certain beliefs reflected in the employer’s equity framework, she was removed from her position in violation of the First Amendment’s protection against government-compelled beliefs. The Seventh Circuit did not decide the merits of that claim but remanded it for further proceedings.
Practical Takeaways for Employers
For employers, the decision reinforces several practical points:
- A Title VII claim based on opposition to DEI initiatives still requires evidence that an adverse employment action was taken because of a protected characteristic or because the employee opposed conduct that Title VII prohibits.
- Employers should continue to document legitimate, nondiscriminatory reasons for personnel decisions, particularly where disagreements over workplace initiatives overlap with performance expectations or compliance with established instructional or operational frameworks.
- Public employers should recognize that constitutional considerations, such as the First Amendment, may present issues distinct from Title VII. Those considerations generally do not apply to private employers.
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