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March 03.2026

2 Minutes Read

Why Complying with Customers’ Race-Based Preferences is Illegal

Equal Employment Opportunity Commission sign highlighting equal workplace rights.

Understanding Race-Based Preferences in the Workplace

The recent lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC) against Mid-Michigan Home Health & Hospice underscores the legal and ethical implications of complying with customers' race-based preferences. Allegations against the company claim that a Black certified nursing assistant (CNA) was denied assignments and unfairly treated because clients purportedly preferred White workers over Black employees. This case serves as a crucial reminder that customer preference is not a legitimate justification for racial discrimination in the workplace.

The Legal Framework

Under Title VII of the Civil Rights Act of 1964, any employment discrimination based on race is prohibited. This law explicitly covers scenarios where an employer makes decisions based on the racial biases of clients or customers. The EEOC’s stance, reinforced by Regional Attorney Kenneth Bird, clearly states that “customer preference is not a defense” for race discrimination. The lawsuit details how the Black CNA was systematically assigned fewer shifts and was even terminated shortly after raising her concerns about discrimination.

Implications for Employers

Employers must recognize the risks associated with allowing customer biases to dictate employment practices. Not only can such actions lead to legal ramifications, but they can also damage workplace morale and employee retention. As highlighted by insights from HR research, fostering an inclusive environment is essential for attracting and retaining top talent. Employers should strive to establish policies that promote equity and assertively address any forms of racism that may arise from client interactions.

Actionable Steps for Employers

To mitigate risks related to discriminatory practices, companies should implement comprehensive training programs focused on diversity, equity, and inclusion (DEI). Additionally, employers should establish clear reporting mechanisms for employees who experience discrimination or witness it in their workplace settings. By taking a proactive approach, organizations can cultivate a work culture that prioritizes respect and equality, demonstrating a commitment not just to legal standards but to ethical responsibility as well.

Final Thoughts

This case serves as a pivotal moment for employers to reevaluate their stance on customer preferences and race. It is a reminder that the intersection of law and ethics in employment practices must be carefully navigated. Upholding employee rights and building an inclusive workforce is not only a legal obligation but also a vital component of sustainable business practice.

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Why Complying with Customers’ Race-Based Preferences is Illegal

Understanding Race-Based Preferences in the Workplace

The Legal Framework

Implications for Employers

Actionable Steps for Employers

Final Thoughts

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