Federal Trade Commission Chairman Andrew N. Ferguson has sent warning letters to 42 major law firms regarding concerns about potentially unfair and anticompetitive employment practices linked to their participation in the Mansfield Certification program.
The Mansfield Certification, developed by Diversity Lab—a for-profit diversity, equity, and inclusion (DEI) consultancy—requires participating law firms to follow specific DEI-based employment standards. According to public information, these firms also meet regularly with Diversity Lab and competing law firms to discuss how to implement these criteria.
The law firms that received the letter collectively employ over 50,000 attorneys who are subject to Diversity Lab’s standards. Additionally, hundreds of other law firms employing tens of thousands more attorneys have reportedly obtained Mansfield Certification.
Chairman Ferguson’s letter reminds recipients that collusion among competitors in hiring practices—including coordination based on personal characteristics such as race or gender and sharing sensitive pay and benefits information—may violate antitrust laws.
“Potentially anticompetitive collusion between law firms on DEI metrics can include quotas by which they agree to compose panels of job candidates based on race, sex, or other personal characteristics other than the candidate’s merit, or by which law firms agree to make final decisions about hiring and promotions based on those personal characteristics,” said Chairman Ferguson. “Such agreements can distort competition for labor in legal professions, including along dimensions like hiring decisions, pay, and promotions.”
The FTC’s warning was sent to a list of prominent U.S. law firms: Alston & Bird, Arnold & Porter, BakerHostetler, Cooley, Covington & Burling, Davis Polk, Debevoise & Plimpton, Dentons, DLA Piper, Faegre Drinker, Fox Rothschild, Gibson Dunn, Goodwin Procter, Gordon Rees, Greenberg Traurig, Hogan Lovells, Holland & Knight, Husch Blackwell, Jackson Lewis, K&L Gates, Latham & Watkins, Lewis Brisbois, Littler, Mayer Brown, McDermott Will & Emery, McGuireWoods, Morgan Lewis, Nelson Mullins, Ogletree Deakins, Paul Weiss, Perkins Coie, Polsinelli, Reed Smith, Sheppard Mullin, Sidley Austin, Skadden Arps Slate Meagher & Flom LLP (Skadden), Troutman Pepper Hamilton Sanders LLP (Troutman Pepper), White & Case LLP (White & Case), WilmerHale LLP (WilmerHale), Wilson Elser Moskowitz Edelman & Dicker LLP (Wilson Elser), Wilson Sonsini Goodrich & Rosati PC (Wilson Sonsini), and Winston & Strawn LLP.
The Federal Trade Commission states its mission is to promote competition while protecting and educating consumers. The agency advises the public that it will never demand money or make threats and encourages individuals to learn more about how competition benefits consumers through its website.
