Deloitte settles $21.5M with DOJ over DEI practices

The U.S. Justice Department announced a $21.5 million settlement with Deloitte entities over allegations that the firm used diversity and inclusion goals to guide hiring, promotion, and staffing for federal contracts, while falsely certifying compliance with anti-discrimination requirements from 2017 to the present. The case, brought under the False Claims Act, also involves race- and sex-based employment practices and a whistleblower claim tied to compensation adjustments and training access tied to demographic targets. The government contends that Deloitte monitored demographic progress and evaluated senior leaders based on those goals, affecting promotion and staffing decisions and limiting access to certain programs for employees based on race or sex. DOJ officials emphasized that government contractors cannot reward or penalize employees for race or sex, and that labeling such practices as DEI does not make them lawful. The settlement highlights ongoing federal efforts to enforce equal opportunity obligations in contracting, and Deloitte’s multiple affiliates are named in the agreement.