Washington — Deloitte has agreed to pay $21.5 million to resolve U.S. government allegations that it discriminated against employees and job applicants based on race or sex while falsely certifying compliance with anti-discrimination requirements tied to federal contracts, the Justice Department said.
The settlement covers Deloitte LLP, Deloitte Consulting LLP, Deloitte & Touche LLP, Deloitte Financial Advisory Services LLP and Deloitte Transactions and Business Analytics LLP.
The Justice Department alleged that Deloitte violated the False Claims Act by certifying compliance with federal equal-employment requirements from 2017 to the present while engaging in discriminatory hiring, promotion and staffing practices.
“Government contractors cannot reward or penalize employees based on race or sex — and labeling the practice DEI does not make it lawful,” Attorney General Todd Blanche said. “The Justice Department will aggressively pursue government contractors that have used taxpayer dollars to fund unlawful discrimination.”
Federal authorities alleged that Deloitte considered race and sex in employment decisions as part of internal workforce composition goals that were not publicly disclosed. Business units received monthly reports tracking their progress toward those targets, according to the department.
The government also alleged that partners, principals and managing directors were evaluated partly on their efforts to meet workforce composition goals. For two years, compensation for about 150 senior executives could be affected if their units failed to meet demographic targets, the Justice Department said.
“Merit drives opportunity and promotion. Not someone’s sex or race,” Associate Attorney General Stanley E. Woodward Jr. said.
Authorities also alleged that demographic goals influenced promotion decisions. In one case, Deloitte allegedly identified candidates by race and sex in a spreadsheet and suggested promoting certain employees to “equitably maintain the current mix.”
The Justice Department further alleged that Deloitte considered race and sex when addressing employees who were understaffed or “on the bench” and restricted access to some training, mentoring, leadership development and educational programs based on those characteristics.
The settlement stems from a whistleblower lawsuit filed by the American Alliance for Equal Rights under the False Claims Act. The organization will receive $4.3 million from the government’s recovery.
The Justice Department said the settlement resolves allegations only and does not constitute a determination of liability against Deloitte. (Source: IANS)
