Deloitte agrees to $21.5 million settlement over alleged DEI violations
Consulting firm Deloitte will pay $21.5 million to resolve Department of Justice claims it breached anti-discrimination rules through its diversity, equity and inclusion practices.
Deloitte has settled a Department of Justice lawsuit for $21.5 million after being accused of violating federal anti-discrimination statutes tied to its diversity, equity and inclusion policies. The DOJ contended that the firm breached the False Claims Act by falsely asserting compliance while using race and sex as criteria in hiring, promotion, staffing and compensation, particularly for senior partners known as PPMDs whose bonuses could be adjusted based on workforce composition goals.
Evidence cited includes spreadsheets that identified candidates by race and sex to preserve a prescribed employee mix and programs that limited participation based on demographic characteristics. The allegations span from 2017 to the present and involve Deloitte’s extensive contracts with agencies such as the Department of War, the Department of Health and Human Services and the Department of Homeland Security. The settlement reflects a broader Trump-administration push to eliminate DEI activities among federal contractors.
Why it matters
The case highlights federal enforcement of anti-discrimination rules and the financial risk for large contractors that misrepresent compliance.
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