Deloitte has agreed to pay $21.5 million to settle a US government investigation into its diversity, equity and inclusion (DEI) practices, without admitting wrongdoing. The US Department of Justice alleged that the consulting firm considered race and sex in certain hiring, promotion and staffing decisions while pursuing internal workforce targets. Deloitte said it agreed to the settlement to avoid the cost, uncertainty and disruption associated with prolonged litigation.

According to the DOJ, Deloitte had established non-public goals relating to the racial and gender composition of its workforce. The department alleged that business units received regular updates on their progress towards those goals and that some senior executives had performance evaluations linked to efforts to meet the targets. The government also alleged that compensation for about 150 senior Partners, Principals and Managing Directors could have been affected by the performance of their business units against demographic goals.

The DOJ further alleged that race and sex were considered in certain promotion and staffing decisions. It also cited programmes including Springboard and Compass, claiming that access to some initiatives was restricted based on race or sex. The government argued that such practices were inconsistent with Deloitte’s obligations as a federal contractor and formed the basis of the investigation under US anti-discrimination requirements.

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Deloitte has denied the allegations and has not acknowledged liability as part of the settlement. The agreement specifically states that the resolution does not constitute an admission of liability by Deloitte, while also not representing a concession by the US government that its claims are unfounded. The company said resolving the case would allow it to avoid the expense and distraction of extended legal proceedings.

Under the settlement, around $10 million of the $21.5 million will go towards restitution, with the remainder covering civil penalties and interest. The American Alliance for Equal Rights, which brought a related whistleblower case under the False Claims Act, will receive $4.3 million from the settlement. The development comes as the Trump administration has increased scrutiny of corporate DEI programmes connected to federal contracting.

The Deloitte settlement follows a similar case involving IBM, which agreed to pay $17 million to resolve allegations concerning its DEI practices. The DOJ launched its Civil Rights Fraud Initiative in May 2025 to investigate alleged discrimination associated with federal contracts. The cases signal a broader shift in the government's approach, with federal contractors facing potential False Claims Act liability if they are found to have violated anti-discrimination commitments made as part of their contracts.

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