According to employees, Lowe’s management decided in the mid 1990s that it was exposed to potential litigation on the grounds that it was not maintaining racial and gender based diversity in its employees. In the wake of several high profile actions brought against Lowe’s largest competitor, Home Depot, the employees allege that Lowe’s management decided to diffuse the possibility of similar suits by taking immediate action. As a result, the employees allege Lowe’s implemented a "Diversity Goals" program, the core of which was allegedly to begin placing minorities and females into high ranking positions within the company. As part of this program, the employees claim that Lowe’s instituted several policies to further this objective. Initially, it is alleged that Lowe’s conditioned Human Resource and Operations Managers' compensation and bonus potential on attaining certain levels of female and minority employees in each job group available at Lowe’s. Employees claim that Lowe’s second method of boosting diversity was to selectively abandon internal Human Resource policies on solicitation, posting, and interviewing for positions when the positions were to be filled by minorities or females. The employees further claim that Lowe’s would disregard educational and experience qualifications when trying to place a minority or a female into a higher position. Finally, the employees claim that positions were created for minority and female employees that were based specifically on their experience and qualifications and with the intention of excluding Caucasian and/or male employees from attaining those positions.

The employees allege that despite what on the surface may seem like a true effort to diversify the company, age old prejudices and discriminations were prevalent within Lowe’s. The employees claim that these actions were merely "window dressing" whose aim was to reduce Lowe’s exposure to litigation based on discrimination. However, they claim that in taking these actions, Lowe’s was in fact discriminating against them by denying them access to promotions and compensation due to the fact that they were not racially diverse, not because they lacked experience or education. The employees allege that in many cases they were more qualified than female and minority employees but were paid less for equal positions. Ultimately, the employees assert that many of them were forced to relocate, resign or were terminated when they complained repeatedly to senior management about these practices.