Accenture Settles With Justice Department Over DEI Policies

Accenture Plc, a management and technology consulting company, has agreed to pay $25 million to resolve allegations by the U.S. Justice Department that it took race and sex into consideration when making hiring and promotion decisions.

The Justice Department said in a statement that Accenture engaged in discriminatory employment practices when it falsely certified compliance with regulations on government contracts prohibiting such practices.

The Trump administration has directed federal contractors to certify that they don’t operate diversity and inclusion programs, which it views as violations of antidiscrimination statutes. The department’s civil division has been using the False Claims Act to target companies it believes are still using DEI policies after certifying that they’re in compliance with those regulations.

“Opportunity and promotion in the workplace must be earned through merit,” said Associate Attorney General Stanley Woodward. “Today’s resolution makes unmistakably clear that the department will continue to aggressively pursue unconstitutional discriminatory employment practices.”

The government alleged Accenture was working toward what one employee described as “stealth goals” to achieve race and sex-based targets for the makeup of the workforce in its various units. The government said in the settlement agreement the workforce demographic goals were documented internally in monthly reports.

The allegations stemmed from 2017 to the present, according to the Justice Department. Accenture’s practices also affected training and educational opportunities, the government said.

A representative for the company said it complies with applicable laws, and noted the settlement doesn’t 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 costs and resource demands of prolonged litigation,” the spokesperson said.

Top photo: An Accenture office at One Manhattan West in New York, on Friday, March 1, 2024. Photographer: Angus Mordant/Bloomberg.