Deloitte to pay $21.5 million to settle U.S. DOJ probe into DEI practices

The Justice Department alleged Deloitte set demographic targets that influenced hiring, promotions, and staffing on federal contracts

Accounting and consulting firm Deloitte has agreed to pay $21.5 million to resolve a US government investigation into its diversity, equity and inclusion (DEI) practices.The settlement was announced by the US Department of Justice (DOJ) under its Civil Rights Fraud Initiative, launched in May 2025. The government alleged that Deloitte violated the False Claims Act by falsely certifying compliance with anti-discrimination provisions linked to its federal contracts.Pune: Deloitte To Prepare ESIA Report For ₹890-Crore Water Supply Project In GBS-Hit Villages Allegations over hiring and promotionsAccording to the DOJ, Deloitte considered race and sex in employment decisions, including hiring, promotions and staffing, while pursuing internal workforce composition targets.The government alleged that Deloitte business units received monthly reports showing their progress against demographic objectives. Performance was categorised using colour-coded indicators depending on whether targets were exceeded, met or significantly missed.The DOJ further alleged that some senior Partners, Principals and Managing Directors had their evaluations influenced by progress towards these workforce goals. For around 150 senior executives, compensation could also be affected if their business units failed to meet demographic targets.The government also alleged that racial and gender considerations influenced promotion decisions for senior positions and that certain employees were identified by race and sex during selection processes. Dispute also covered federal contract staffingThe allegations extended to staffing employees on federal projects. Deloitte was accused of identifying workers by race and sex and encouraging staffing managers to consider demographic composition when assigning employees to projects.The DOJ also alleged that certain training, mentoring, leadership development and educational programmes had eligibility criteria based on race or sex.Deloitte denied the allegations but agreed to pay $10 million in restitution and $11.5 million to settle the case. The company said the settlement would allow it to avoid prolonged litigation and focus on developing talent.The action comes amid increased US scrutiny of corporate DEI policies. Deloitte rival IBM agreed to a $17.1 million settlement over similar allegations earlier this year.US Attorney General Todd Blanche said government contractors cannot use race or sex to reward or penalise employees, arguing that describing such practices as DEI does not make them lawful.

Deloitte has agreed to pay $21.5M to settle a US Justice Department investigation into its diversity practices, without admitting liability. The firm is one of the largest technology consultancies in the world as well as an accountancy, and it sits inside the same enterprise AI and systems integration market that has drawn Indian IT firms […] This story continues at The Next Web

U.S. President Donald Trump has cracked down on DEI during his second ​term; DOJ said Deloitte tracked ‘demographic goals’, impacted promotion decisions

Deloitte will pay $21.5 million to settle a US DOJ probe into its DEI practices and claims by the American Alliance for Equal Rights.

Deloitte agreed to a $21.5 million settlement to end the Justice Department's investigation into its DEI practices.