Home / Crime and Justice / Deloitte Pays $21.5M Over DEI Hiring Allegations
Deloitte Pays $21.5M Over DEI Hiring Allegations
26 Aug
Summary
- Deloitte settled for $21.5M over bias claims in federal contracts.
- Allegations include using demographic targets from 2017 to present.
- Whistleblower organization receives $4.3 million of the settlement.
Deloitte has agreed to a $21.5 million settlement with the Justice Department to resolve allegations of violating anti-discrimination requirements in federal contracts.
The department claimed that from 2017 to the present, Deloitte utilized internal programs with demographic targets to shape employment decisions, including hiring and promotions.
These targets were reportedly tracked through monthly reports, with some senior partner compensation linked to meeting workforce composition goals. Eligibility for certain training and mentorship programs was also allegedly limited by race or sex.
Deloitte denied the allegations but settled to avoid litigation costs. The American Alliance for Equal Rights, founded by Edward Blum, will receive $4.3 million under the whistleblower provisions of the False Claims Act.
This resolution is part of the Justice Department's Civil Rights Fraud Initiative, applying the False Claims Act to federal contractors with DEI-related employment practices. This follows IBM's April settlement for $17 million over similar issues.
