<p>Consulting firm Deloitte will pay $21.5 million to settle allegations from the Department of Justice (DOJ) that it violated federal anti-discrimination requirements through its diversity, equity, and inclusion policies.</p>
<p>The DOJ alleged that Deloitte violated the False Claims Act, which holds companies liable for defrauding contracts, by falsely certifying compliance with anti-discrimination requirements attached to its federal contracts while discriminating against employees and applicants based on race or sex.</p>
<p>Deloitte holds billions of dollars in contracts with the U.S. government, providing consulting services to key agencies including the Department of Defense, the Department of Health and Human Services, and the Department of Homeland Security.</p>
<p>As a federal contractor, Deloitte is required to certify that it will not discriminate against employees or applicants based on race or sex and will take steps to ensure applicants are hired and employees are treated “without regard to” race or sex. The settlement resolves allegations that Deloitte falsely certified compliance with those requirements from 2017 to the present while engaging in race- and sex-based employment practices.</p>
<p>The United States alleged that Deloitte considered race and sex in hiring, promotion, and staffing decisions as it sought to meet non-public workforce composition goals.</p>
<p>The DOJ also alleged that Deloitte evaluated partners, principals, and managing directors (PPMDs) in part based on their contributions toward achieving the company’s workforce composition goals. For a two-year period, the compensation of approximately 150 of Deloitte’s most senior PPMDs could be affected if their business units failed to meet Deloitte’s demographic goals.</p>
<p>In one instance, after a group of PPMD candidates initially met Deloitte’s demographic targets, the company allegedly identified candidates by race and sex in a spreadsheet circulated during the selection process and recommended that those involved in selecting candidates promote specific employees to “equitably maintain the current mix.”</p>
<p>The United States also alleged that Deloitte operated the Springboard and Compass programs, which limited eligibility based on race and sex. These programs were designed to improve participants’ career prospects through networking opportunities.</p>
<p>The settlement is part of the Trump administration’s broader effort to address DEI practices and initiatives within the federal government. A March 2026 executive order prohibited all federal contractors and subcontractors from engaging in what was described as “racially discriminatory DEI activities.”</p>