McDonald’s is settling a lawsuit brought forth earlier this month by the American Alliance for Equal Rights claiming that the chain’s college scholarship program for Latino students – called HACER – is discriminatory against non-Latinos.
The American Alliance for Equal Rights is run by activist Edward Blum, whose lawsuits against Harvard and the University of North Carolina led to the 2023 U.S. Supreme Court decision to end affirmative action at U.S. colleges, according to the Wall Street Journal. The ruling from Students For Fair Admissions, Inc. v. President and Fellows of Harvard College was cited as one of the reasons McDonald’s modified some of its diversity, equity, and inclusion practices last month. The company noted in a statement that its priority is to “be a responsible business, acting lawfully and being responsive to the business environment.”
With the HACER settlement, McDonald’s states that it disagrees with the lawsuit’s claim that the program is discriminatory. However, the chain said a legal challenge would mean this year’s applicants would not have the opportunity to compete for the scholarship funds.
“… As we explored the path forward, we focused on two clear goals. First: ensure that applicants for this year’s scholarship funds do not lose out on the opportunity to receive awards that will help them pursue their educational aspirations. There are more than 3,000 students who have completed their application for the HACER scholarship, hoping to receive money to start school this fall,” the company posted on its website. “The second goal: safeguard HACER, which has been a deeply important program that has existed for nearly 40 years and has been instrumental in creating educational opportunities for Hispanic students pursuing higher education.”
McDonald’s said it held discussions with franchisees, community leaders and organizations, educational leaders, past HACER recipients, and employees to conclude that settling the lawsuit and evolving the program is “the right thing to do for its recipients.”
As part of that evolution, McDonald’s will remove the criteria that at least one parent be of Hispanic/Latino heritage. Instead, applicants must demonstrate their impact and contribution to the Hispanic/Latino community through their activities, leadership, and service.
The HACER National Scholarship was established in 1985 by owner/operator Richard Castro to assist Hispanic students as they pursue their higher education goals. To date, more than $33 million in scholarships have been awarded to more than 17,000 recipients.
Contact Alicia Kelso at [email protected]
