Deloitte paying $21.5M to settle investigation into hiring practices
What's the story
Deloitte, a leading accounting firm, has agreed to pay $21.5 million to settle a US Department of Justice (DOJ) investigation into its diversity and inclusion practices. The settlement comes after allegations that the company violated federal contracting laws by discriminating against employees and job applicants based on race or sex. Under the deal, Deloitte will pay $10 million in restitution and another $11.5 million as part of the settlement agreement.
Legal proceedings
Settlement was reached under the False Claims Act
The settlement was reached under the False Claims Act, through the DOJ's Civil Rights Fraud Initiative.
The initiative was established in May 2025 to combat discrimination in government contracting.
It allows whistleblowers to sue on behalf of the government and recover taxpayer money paid based on false claims.
Whistleblowers are entitled to a share of any recovery in such cases.
Allegations
DOJ's allegations against Deloitte
The DOJ alleged that from 2017 onward, Deloitte falsely certified its compliance with federal contracting laws requiring equal employment opportunities regardless of race or sex.
It further alleged that Deloitte took into account race or sex when making hiring, promotion, and staffing decisions to meet its non-public workforce composition goals.
Company statement
Settlement comes after IBM's similar agreement
Deloitte has denied the allegations but agreed to settle the matter.
A company spokesperson said, "We are pleased to have resolved this matter to avoid the cost and distraction of protracted litigation."
The firm is one of the largest consultants to the US government, with contracts mandating compliance with anti-discrimination practices.
Notably, this settlement comes just months after IBM agreed to pay $17.1 million over similar allegations.