Justice extracts $25M settlement from Accenture Federal over diversity goals
Gettyimages.com/Philip Yabut
By
Nick Wakeman
Accenture Federal Services pays to resolve allegations that its hiring and promotion practices were tied to internal diversity, equity and inclusion targets.
A third government contractor has reached a settlement with the Justice Department regarding allegations that the company violated the Trump Administration’s anti-discrimination policies.
Accenture Federal Services will pay $25 million to resolve the allegations, the department said Monday. The settlement does not include an admission of wrongdoing by the company.
Federal contracts regularly include provisions to provide equal opportunities for applications and to not discriminate based on race, sex, religion or national origin.
Several Trump administration executive orders have targeted these requirements because the administration alleges that diversity, equity and inclusion policies and practices discriminate against white applicants in favor of minority applicants.
“Opportunity and promotion in the workplace must be earned through merit,” said Associate Attorney General Stanley E. Woodward Jr. in DOJ’s announcement of the settlement. “Today’s resolution makes unmistakably clear that the Department will continue to aggressively pursue unconstitutional discriminatory employment practices.”
The Accenture Federal agreement follows Deloitte’s $21.5 million settlement in August and IBM’s $17.1 million settlement in April. Each case was pursued by the Justice Department under the False Claims Act.
In the Accenture case, the Justice Department criticized the company’s practice of tracking hiring and employee demographics based on race and sex. The settlement alleges that business leaders received monthly summaries of the percentage of each race and sex within their business unit.
Justice said the numbers were highlighted green, yellow and red depending on whether they were 5% above demographic goals, within 5% of the goal or were more than 5% below the goal.
Accenture also was trying to promote more female and non-white personnel into management positions. The company ran an “Amplify to Elevate” training program reserved for certain employees based on race. The program designed to boost career prospects for these employees through mentorship and networking, Justice alleges.
“Accenture complies with applicable laws, and our resolution does not constitute an admission of liability. We have cooperated with the government’s review, and we are pleased to put this matter behind us to avoid the cost and resource demands of prolonged litigation,” a company spokesman said.
The Trump administration’s anti-DEI efforts began on day one when the president signed executive orders rescinding practices to promote minority involvement in government contracting, including contract requirements that have been in place since the Johnson administration in the 1960s.
Earlier this year, the administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division. The argument is that companies that favor minority hires are committing fraud because the Trump administration’s contracting requirements prohibit DEI hiring practices.
“Federal contractors have a straightforward obligation: make employment decisions without regard to race or sex,” said Assistant Attorney General Brett A. Shumate of Justice's civil division. “A company cannot take taxpayer dollars, certify that it is following that simple principle, and then use race or sex as a factor in deciding who gets an opportunity.”
The administration is facing a legal challenge to its anti-DEI efforts.
A coalition that includes the National Association of Minority Contractors and several higher education groups filed a lawsuit in April asking that the court block enforcement of executive orders enforcing anti-DEI requirements. That case is active at the U.S. District Court of Maryland.