Deloitte Agrees to $21.5 Million Settlement over US Bias Claims
Accounting and consulting firm Deloitte has consented to pay $21.5 million to resolve a US government probe into its diversity, equity, and inclusion (DEI) policies.
The agreement is the most recent one made under the False Claims Act through the US DOJ's Civil Rights Fraud Initiative, established in May 2025, as stated by the US Department of Justice (DOJ).
The department stated that Deloitte breached the False Claims Act by not adhering to anti-discrimination conditions linked to its federal contracts and by discriminating against workers and applicants based on race or gender.
The agreement addresses claims that, since 2017, Deloitte inaccurately certified its compliance with these standards while partaking in discriminatory employment practices based on race and sex.
The department claimed that Deloitte considered race or sex when making hiring, promotion, and staffing decisions to advance towards undisclosed, race- and sex-oriented workforce composition objectives.
Business divisions at Deloitte obtained monthly reports monitoring advancements toward demographic objectives. The representation or advancement towards those objectives was marked in green, yellow, or red, based on whether a goal was surpassed, achieved, or just slightly missed, or was far below the target.
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The US government also claimed that Deloitte's Partners, Principals, and Managing Directors (PPMDs) were assessed, in part, based on their role in reaching the company's workforce diversity objectives. For two years, the pay of around 150 of Deloitte's highest-ranking PPMDs could be impacted if their business units did not achieve the demographic targets established by the firm.
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The department also claimed that the demographic objectives were meant to affect Deloitte's promotion choices, with business units given targets for the racial and gender makeup of their yearly PPMD classes.
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For instance, in cases where a group of PPMD candidates first aligned with Deloitte's demographic targets, the firm is said to have noted candidates' race and gender in a spreadsheet while distributing the list. The department stated that those tasked with choosing PPMD candidates were encouraged to elevate certain employees to preserve the current demographic balance.