Trump’s tough stance on DEI costs Big Four giant Deloitte millions
Deloitte has agreed to pay the US government $21.5m to settle allegations that it violated federal ‘equal opportunity’ requirements in its contracts, as the Trump administration continues its crackdown on diversity, equity, and inclusion.
The US Justice Department claimed that from 2017 to the present, the Big Four giant had falsely said it had complied with new Trump-administration laws preventing proactive discrimination for employees and applicants based on race and sex.
Deloitte was accused of several violations of federal law, including allegedly tying the compensation and evaluations of some of its most senior partners to meeting non-public, race- and sex-based workforce composition goals.
Attorney general Todd Blanche, who replaced Pam Bondi in April, stated that “labelling the practice DEI does not make it lawful”. He added: “The Justice Department will aggressively pursue government contractors that have used taxpayer dollars to fund unlawful discrimination.”
Deloitte resolved the claims with the government through its settlement, but no official determination of liability was made against the Big Four firm.
Associate attorney general Stanley Woodward added: “Today’s settlement is yet another example of this Department’s commitment to eliminating woke, unconstitutional practices from American workplaces.”
Deloitte spokesperson said: “We are pleased to have resolved this matter to avoid the cost and distraction of protracted litigation, allowing us to remain focused on attracting and developing exceptional talent with the skills and capabilities our clients rely on every day.”
Trump-era DEI crackdown
Conservative activist Edward Blum’s organisation, The American Alliance for Equal Rights, reported the Big Four firm to the government under the whistleblower provisions of the False Claims Act, and as a result of the settlement, it was set to receive $4.3m.
The group has also targeted other organisations over diversity, equity and inclusion (DEI) practices, including suing law firms like Morrison & Foerster and Perkins Coie over diversity fellowships.
The Trump administration’s crackdown on DEI hit several major US law firms, with the US President issuing a range of executive orders last year. Trump sought to cancel federal contracts and restricted security clearances for law firms because of their DEI programmes and legacy legal work they had done with the Democratic Party.
Several firms, including Paul Weiss, A&O Shearman, and Latham & Watkins, struck deals with the White House to drop federal inquiries last year, while Perkins Coie, Wilmer Hale, and Jenner & Block pushed back through federal court battles.