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Deloitte agrees to pay $21.5 million to settle Department of Justice allegations of unlawful discrimination in diversity initiatives

Deloitte has agreed to pay $21.5 million to settle a Department of Justice probe into its diversity, equity, and inclusion (DEI) practices. The administration announced the settlement resolves allegations that the company violated the False Claims Act by allegedly discriminating against employees and applicants on the basis of race or sex while pursuing demographic goals. Attorney General Todd Blanche stated that while labeling a practice as DEI does not make it lawful, government contractors must provide equal opportunity and cannot reward or penalize employees based on race or sex. The administration has been aggressively pursuing government contractors that have used taxpayer dollars to fund unlawful discrimination. Deloitte denied the allegations of discriminatory conduct and did not admit liability, stating the settlement was reached to avoid the cost of protracted litigation. As part of the agreement, the American Alliance for Equal Rights, a group founded by Edward Blum, will receive a $4.3 million payout as a whistleblower. This settlement follows a broader crackdown by the administration on DEI initiatives, which have been targeted for undermining merit-based decision-making.

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