Deloitte will pay nearly $21.5 million to settle allegations that it defrauded the federal government by considering race and sex in hiring, promotion, and staffing decisions.
According to an August 25, 2026, news release from the U.S. Department of Justice, the multinational professional services firm tracked diversity across its business units and setting race- and sex-based demographic goals that affected hiring and promotion decisions.
Deloitte tracked business units’ progress toward demographic workforce goals through monthly, color-coded summaries, the news release states. Senior leaders were also evaluated partly on their contributions to these goals, and for two years, compensation for approximately 150 senior leaders could be affected if their units did not meet them.
“Merit drives opportunity and promotion. Not someone’s sex or race,” Associate Attorney General Stanley E. Woodward Jr. said in a statement. He described the settlement as “yet another example of this Department’s commitment to eliminating woke, unconstitutional practices from American workplaces.”
Deloitte did not admit liability and denied the allegations as part of the settlement agreement.
Deloitte’s settlement comes as the Trump administration continues to enforce the False Claims Act to dismantle diversity, equity, and inclusion (DEI) initiatives at major U.S. companies that contract with the federal government.
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