"Is This Legal?"

In the wake of the George Floyd protests, tech companies promised to hire more minorities. One company that claims to help them do it is Gem, and although you might not have heard of it, you’ve probably heard of some of its 1,200-plus clients: Reddit, Dropbox, Robinhood, Discord, Zillow, Stripe, Affirm, and Grammarly, just to name a few. Although Gem’s software is primarily used for things like non-race- and gender-based recruiting, payroll, and benefits management, John, (not his real name) — who worked for Gem as a sales development representative through a B2B outsourcing firm from March to July of 2021, told us that the prospective corporate clients he talked to were most interested in Gem’s “diversity enhancing” capabilities. Essentially, they had race- and gender-based hiring quotas and wanted to use Gem’s software to meet them. He said one prospective client, an executive at the Bay Area-based AI and robotics research arm of one of the world’s leading car manufacturers, told him explicitly: “I need more black candidates this month.”

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