Deloitte to Pay $21.5M to Settle Claims Its DEI Programs Violated Civil Rights Law
Deloitte has agreed to pay $21.5 million to settle US Department of Justice claims that its DEI initiatives failed to comply with federal antidiscrimination requirements, in violation of the False Claims Act. DOJ believe that the company set goals to increase Black and Hispanic representation.
Government contractors cannot reward or penalize employees based on race or sex — and labeling the practice DEI does not make it lawful,” Attorney General Todd Blanche said in a DOJ statement, according to HR Dive. This settlement is part of a wider plan by the Trump administration to push its anti-DEI agenda.
The $21.5 million settlement
Deloitte promoted race- and sex-based employment practices from January 2017 to August 2026, including hiring, promotion and staffing decisions “to achieve progress toward non-public race and sex-based workforce composition goals,” according to the DOJ.
The business also set targets based on the demographics of staff working on federal contracts. It provided training, mentorship, and career advancement opportunities to specific employees based on race or sex, according to the DOJ.
Edward Blum, founder of The American Alliance for Equal Rights, filed companion claims under the False Claims Act and will receive $4.3 million from the settlement. Around a fifth of the payment will go towards the organisation that brought the claims rather than any specific individuals.
Deloitte scrapping DEI practices
Last year, Deloitte announced it would scrap its diversity goals. It urged government contract employees to remove gender pronouns from their email signatures, according to The Financial Times. The firm told consultants to remove gender-specific pronouns from external emails to align with emerging government client practices and requirements, as reported by people with similar accounts.
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