Deloitte pays $21.5 million to settle federal probe into DEI practices
Consulting firm Deloitte has agreed to pay $21.5 million to resolve a U.S. Justice Department investigation alleging discriminatory hiring and promotion practices related to its diversity initiatives.
Consulting giant Deloitte has settled a federal investigation into its diversity, equity, and inclusion (DEI) programs, agreeing to pay $21.5 million to resolve allegations of discrimination. The U.S. Justice Department had accused the firm of considering race and gender in hiring and promotion decisions since 2017.
The government claimed Deloitte violated federal law by using "discriminatory race and sex-based employment practices," particularly concerning employees working on federal contracts. U.S. Attorney Todd Blanche stated, "Government contractors cannot reward or penalize employees based on race or sex—and labeling the practice DEI does not make it lawful."
The Justice Department took issue with Deloitte's tracking of demographic data and tying diversity goals to executive compensation. The probe focused on policies that allegedly favored certain groups over others, contravening anti-discrimination measures for federal contractors.
A Deloitte spokesperson stated the company was "pleased to have resolved this matter to avoid the cost and distraction of protracted litigation," allowing focus on talent development.
This settlement is part of a broader trend where the Justice Department has scrutinized DEI initiatives at major companies. IBM previously settled a similar investigation for $17 million, and PayPal paid $30 million related to an investment program. Reports also indicated investigations into Verizon and Alphabet.