Deloitte pays $21.5 million settlement as DOJ cracks down on DEI in federal contracts
Deloitte agreed to a $21.5 million settlement with the Justice Department over alleged illegal diversity, equity and inclusion practices in its federal work.
The Trump administration’s Justice Department announced that Deloitte will pay $21.5 million to resolve accusations that it breached the False Claims Act by certifying compliance with federal nondiscrimination rules while employing race and sex preferences in its federal contracting work. The allegations detail color-coded scorecards tracking demographic goals, compensation tied to those targets, and partner promotion classes assigned racial and gender quotas.
Deloitte rejected the claims and did not admit liability. U.S. Attorney General Todd Blanche and Associate Attorney General Stanley E. Woodward, Jr. reiterated that contractors must base opportunities on merit, not demographic criteria. The settlement comes after IBM’s $17 million resolution, signaling heightened scrutiny of DEI policies among top federal contractors. Analysts warn that companies with similar internal practices could face future actions if they do not align policies with nondiscrimination certifications.
Why it matters
Federal contractors risk multimillion-dollar penalties if DEI programs conflict with nondiscrimination laws.
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