Deloitte will pay $21.5 million to resolve a US Department of Justice investigation into its diversity, equity and inclusion practices, as the Trump administration continues its push to dismantle such programmes across public and private organisations.
The settlement follows allegations that some Deloitte units tracked workforce diversity targets and tied part of senior executives' assessments to meeting them.
DOJ Raises Concerns Over Workforce Targets
According to the Justice Department, Deloitte maintained monthly reports that tracked what it described as “demographic goals”. The department alleged that the targets were aimed at increasing representation of Black and Hispanic employees and influenced decisions related to promotions.
The investigation was conducted through the DOJ's Civil Rights Fraud Initiative, a unit created last year to examine DEI-related practices using the civil anti-fraud provisions of the False Claims Act.
The Trump administration has taken a tougher stance on DEI policies during President Donald Trump's second term. Executive orders have directed federal contractors and subcontractors to eliminate such programmes, while several US companies have reviewed or changed their diversity policies.
The administration argues that DEI programmes can result in discriminatory treatment and undermine merit-based decisions. Civil rights groups, however, have defended such initiatives as tools to address longstanding disparities affecting underrepresented communities.
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Deloitte Denies Discrimination Allegations
Deloitte has denied engaging in discriminatory conduct. The settlement agreement also states that the company does not admit liability as part of the resolution.
The accounting firm said it agreed to the settlement to avoid the expense and disruption associated with prolonged litigation.
The agreement also settles claims brought by the American Alliance for Equal Rights, an organisation founded by affirmative-action opponent Edward Blum.
The group pursued the claims under the US False Claims Act, which permits whistleblowers to bring cases on behalf of the government when they allege that taxpayer funds were obtained through false claims.
Under the settlement, Blum's organisation will receive $4.3 million, according to the Justice Department.
The Deloitte case comes as companies across the US continue to reassess workplace diversity programmes following the Trump administration's actions against DEI initiatives.
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