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What Are Employee Resource Groups?  

Employee resource groups have become a common offering by many employers since they foster a sense of community within the workplace. ERGs are voluntary employee-led groups, typically formed around common characteristics or shared interests. For example, employee resource groups may form around race, sexual orientation, religious beliefs, military participation, or hobbies, such as sports or outdoor activities.  

Though employee resource groups are developed around a shared trait or hobby, they must be open to all employees. Limiting membership to only a select group of employees would risk violating federal or state anti-discrimination laws.  

For the purposes of this article, we are focusing on ERGs that are sponsored by employers, as opposed to groups that are the product of grassroots efforts not involving employers. The key difference between non-sponsored ERGs and employer-sponsored ERGs is employer endorsement. By sponsoring an ERG, an employer may support the group by providing funding, a place to meet and host events, branding rights, and even by providing an executive-level sponsor to act as a liaison between the employer and the ERG.  

The Case  

At issue in the Christians in the Workplace Networking Group (CWNG) case is whether National Technology and Engineering Solutions of Sandia LLC (the employer) violated Title VII of the Civil Rights Act of 1964 by ending sponsorship of the CWNG. The New Mexico-based employer sponsors several ERGs, including the CWNG. The CWNG, first sponsored in 2000, lost its sponsorship in 2020 after it refused to revise the language of its strategic plan to comply with state and federal anti-discrimination laws.   

In 2018, the employer implemented a new policy for all ERGs. This new policy required ERGs to adhere to their anti-discrimination policies and be open to all employees without regard to race, color, creed, religion, etc. CWNG’s strategic plan violated the employer’s policies by requiring employees to sign a statement of faith and morality clause – both of which violated the employer’s anti-discrimination policies. CWNG initially requested a religious accommodation; however, the employer refused because providing the accommodation would allow the CWNG to discriminate against employees based on religious beliefs, sexual orientation, gender identity, etc.  

After CWNG refused to change its strategic plan, the employer denied CWNG’s request for continued sponsorship.   

CWNG filed its case in the United States District Court of New Mexico. The court granted the employer’s motion to dismiss the case, and CWNG appealed to the 10th Circuit Court of Appeals. Though the appeal is still pending before the 10th Circuit, employers may want to rethink their processes for sponsoring ERGs to ensure they do not find themselves in a similar situation.   

Takeaways for Employers  

Employers should review their anti-discrimination policies to ensure compliance with local, state, and federal laws and updated EEOC guidelines. They are also encouraged to review the sponsorship process and ensure ERGs have an open-to-all model before receiving sponsorship. It is vital to ensure the criteria used for sponsorship are compliant with all federal, state, and local employment laws.  

If an ERG has practices or enrollment procedures that do not comply with anti-discrimination laws, document the violations and provide the ERG with a reasonable timeframe to comply before withdrawing sponsorship. Additionally, to prevent claims of disparate treatment, employers may want to shift from identity-based advocacy to a focus on professional development.   

Employers Council will continue to monitor the status of Christians in the Workplace Networking Group v. National Technology and Engineering Solutions of Sandia LLC. Contact us if you have any questions. 

Edward Encinias is an attorney for Employers Council.