Federal Government Investigating Northwestern Mutual DEI Policies
White man claims he suffered discrimination. Company calls probe 'unwarranted.'
Milwaukee skyline from Cudahy Gardens, Milwaukee, Wis. Warren LeMay (CC BY-SA 2.0)
The federal government is investigating Northwestern Mutual, a Milwaukee-based financial services firm, over its diversity, equity and inclusion policies in response to allegations the company discriminated against a white man.
The U.S. Equal Employment Opportunity Commission says it received a complaint from a former Northwestern Mutual employee in March, alleging he was passed over for promotion because of the company’s diversity initiatives.
The company has said it disputes the initial complaint and believes federal efforts to broaden the investigation are “unwarranted overreach.”
Last week, the agency filed a lawsuit in a federal court in Wisconsin that seeks to force the company to provide information about its diversity, equity and inclusion policies and about the company’s decision not to promote the employee.
In a court filing, the U.S. Equal Employment Opportunity Commission, or EEOC, named the employee as Mark McNulty, who was an anti-money-laundering officer.
McNulty left Northwestern Mutual in September, according to his LinkedIn profile.
In his complaint, McNulty alleged the company implemented an “enhanced” diversity, equity and inclusion policy focused on providing support and advancement opportunities to women and people of color, and that he complained to the company about the policy, according to the court filing.
A news release from the agency says Northwestern Mutual enhanced the policy in or around 2020.
McNulty claimed that the company did not promote him because of the policy and because of his complaints, according to court documents. McNulty also claimed the policy discriminates against employees based on their ethnicity, gender and national origin — specifically, white American men, according to the court filing.
McNulty declined to comment, citing the ongoing federal investigation.
When the agency started its investigation, the EEOC requested information related to McNulty’s allegations. It asked for information about his employment, as well as information related to the company’s DEI policies, the filing states.
Northwestern Mutual did provide information about McNulty, but did not provide the agency with documents related to its DEI initiatives, claiming the request was too broad, the filing said. The company also allegedly did not provide an interview with its vice president of diversity and inclusion.
“Northwestern Mutual’s failure to produce its employee for an interview and the requested documents has delayed and hampered the investigation,” the filing stated.
In late June, the EEOC issued a subpoena to Northwestern Mutual that mirrored its initial request for information, court documents said. The company filed a petition in July asking the agency to revoke or modify the subpoena.
The EEOC denied the petition in September, according to a court filing. The following month, Northwestern Mutual allegedly told the agency that it stood by its objections.
“Northwestern Mutual has provided no further records and remains in non-compliance with (the) Subpoena,” the filing said.
Northwestern Mutual told the EEOC in May that McNulty was not qualified for the promotions he sought and that the company’s diversity initiatives do not allow for hiring or promotions based on race, sex or other protected classes, court documents said. The company also allegedly denied that it acted in retaliation toward McNulty.
In a media statement, a spokesperson for Northwestern Mutual said the company is aware of the claim filed with the EEOC, and has worked to provide “substantial information” related to the complaint.
“While the EEOC has made no finding that Northwestern Mutual has violated the law, the commission has since expanded the scope of its inquiry beyond the individual claim in a manner that we believe represents an unwarranted overreach, so we have objected to its broader inquiry,” the statement read. “We remain confident in our practices and strongly dispute the merits of the original claim.”
The federal agency is asking the U.S. Eastern District of Wisconsin court to order Northwestern Mutual to appear before the court to explain why the court shouldn’t direct the company to comply with the subpoena, or order the company to comply with the subpoena.
“When we see clear indications that an employer’s DEI program may violate federal prohibitions against discrimination, we will use the full extent of our authority — including subpoena enforcement — to obtain the information needed to investigate and take appropriate action,” EEOC chair Andrea Lucas said in a statement.
Northwestern Mutual has more than 8,000 employees, according to the EEOC. It was one of eight Wisconsin companies that made the Fortune 500 last year, taking the top spot among firms headquartered in the Badger State.
Federal government investigating Milwaukee-based Northwestern Mutual over DEI policies was originally published by Wisconsin Public Radio.
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