Three major federal contractors have now agreed to pay roughly $63.6 million combined in employment-discrimination settlements as the Trump administration expands its use of the False Claims Act against corporate practices tied to demographic hiring and promotion goals.
Accenture became the latest on Monday, agreeing to pay the US government $25 million to resolve Justice Department allegations involving Accenture Federal Services. The payment includes $11.627 million in restitution, while the settlement also requires interest at a 4% annual rate beginning September 9.
The settlement follows Deloitte’s $21.5 million agreement on August 25 and IBM’s $17.077 million settlement on April 10. IBM’s agreement was the first resolution announced under DOJ’s Civil Rights Fraud Initiative, launched in May 2025 to apply the False Claims Act against recipients of federal funds accused of violating civil rights laws.
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The Accenture case centers on allegations that Accenture Federal Services certified compliance with anti-discrimination obligations in government contracts while maintaining employment practices DOJ contends considered race or sex.
According to the settlement agreement, the alleged conduct ran from January 1, 2017 through the agreement’s effective date. The government alleged Accenture Federal Services maintained non-public workforce composition targets that one employee internally described as “stealth” goals. Managers received monthly reports showing racial and sex representation, with results marked green, yellow, or red depending on performance against those targets.
DOJ alleged the metrics affected hiring decisions and that Accenture Federal Services separately identified promotion candidates who would advance demographic objectives. The government also alleged some training and career-development programs restricted participation based on race or sex, including an Amplify to Elevate program operated from August 2022 until February 2025.
Accenture denies engaging in the conduct described by the government. Its settlement expressly states that the agreement is not an admission of liability. DOJ likewise said the claims are allegations and that no liability determination has been made.
The structure resembles DOJ’s cases against Deloitte and IBM. Deloitte was accused of using demographic targets in hiring, promotion, and staffing, including compensation incentives for some senior personnel. IBM faced allegations involving demographic targets, interview practices, employee programs, and a compensation mechanism tied to diversity objectives. Both matters were settled without a determination of liability.
Accenture’s $25 million payment also does not resolve every conceivable government action. The agreement preserves certain potential criminal liability, administrative remedies including suspension or debarment, and the Equal Employment Opportunity Commission’s authority over current or future charges.
