Deloitte is the latest major federal contractor to enter a multi-million-dollar settlement with the Department of Justice over allegedly unlawful DEI practices. The False Claims Act allegations stem from Deloitte’s efforts to elevate minority groups in hiring, leadership, and educational programs. The $21.5 million settlement, announced on August 25, is part of the Trump administration’s Civil Rights Fraud Initiative which has focused on what the administration calls illegal and discriminatory diversity, equity, and inclusion (DEI) programs within the federal government. Deloitte’s settlement resolves DOJ allegations that it falsely certified compliance with federal contractor equal employment opportunity (EEO) requirements while using race- and sex-based employment practices. It also provides a cautionary tale for other employers looking to avoid similar risks. Here’s everything you need to know about the settlement and key takeaways for your business.
What Happened?
The DOJ announced on August 25 it had reached a settlement with Deloitte and several affiliates to resolve allegations it violated the False Claims Act through its employment programs and policies directed towards “under-represented minorities.” (Learn more about the False Claims Act and the DOJ’s recent focus on complaints under it.) Importantly, the case was a result of a whistleblower qui tam claim filed by the American Alliance for Equal Rights, so the whistleblower (or “relator”) will receive $4.3...
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