Deloitte settles $21.5M with DOJ over DEI practices
Deloitte agreed to pay $21.5 million to settle DOJ allegations that it discriminated against employees and applicants based on race or sex to meet internal diversity metrics tied to federal contracts, while continuing to certify compliance from 2017 to the present. The settlement resolves False Claims Act claims and reinforces that government contractors cannot reward or penalize employees for race or sex, even under a DEI banner.
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About False Claims Act
The False Claims Act of 1863 (FCA) is an American federal law that imposes liability on persons and companies who defraud governmental programs. It is the federal government's primary litigation tool in combating fraud against the federal government. The law includes a qui tam provision that allows people who are not affiliated with the government, called "relators" under the law, to file actions on behalf of the government. This is informally called "whistleblowing", especially when the relator is employed by the organization accused in the suit. Persons filing actions under the Act stand to receive a portion of any recovered damages.
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