Texas Roadhouse is facing a civil rights complaint filed by America First Legal (AFL), which alleges the restaurant chain illegally uses race and gender as factors in hiring and leadership decisions.

The complaint, submitted to the Equal Employment Opportunity Commission, accuses Texas Roadhouse of violating Title VII of the Civil Rights Act of 1964 by prioritizing diversity, equity and inclusion (DEI) policies over merit-based hiring. (RELATED: EXCLUSIVE: AFL Secures Full Reinstatement For Law Professor Who Claims He Was Fired Over DEI Objections)

🚨TEXAS ROADHOUSE GRILLED FOR ILLEGAL DEI PRACTICES —

AFL just filed a federal civil rights complaint against Texas Roadhouse for unlawful discrimination based on race and sex in employment practices. pic.twitter.com/2NCOQjKCXz

— America First Legal (@America1stLegal) August 1, 2025

AFL said the company’s recruitment and promotion practices favor demographic targets and that it tracks employees’ race, gender and ethnicity to meet internal diversity goals. The group also said that such practices expose the company to “reputational risk” and potential shareholder lawsuits.

“The Company has prioritized unlawful DEI programs and policies over shareholder value,” the complaint said.

In its 2024 10-K filing, Texas Roadhouse reaffirmed its commitment to a diverse workforce, saying it aims to build a team that “mirrors the diversity of our guests.” The company also disclosed demographic breakdowns of its workforce, highlighting percentages of employees and managers who are women or people of color.

The complaint highlights that DEI considerations, including race and gender, factor into board nominee decisions — alongside traditional criteria like financial expertise and governance experience — as outlined in the company’s 2024 sustainability report.

AFL’s filing warns that such DEI-driven policies may constitute a breach of fiduciary duties and could invite legal challenges from investors or employees who believe they were unfairly overlooked.

As of now, Texas Roadhouse has not publicly responded to the filing.