Alleged DEI-Motivated Hirings and Promotions Cost Accenture $25M in DOJ Settlement

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• Management and technology consulting firm Accenture will pay $25 million to settle U.S. Department of Justice allegations it has discriminated in its hiring and promotional practices based on race and sex in violation of the False Claims Act since 2017, according to a DOJ announcement Monday.
• According to DOJ’s allegations, Accenture took race and sex into account in both hiring and promotions in order to more heavily favor candidates who advanced their demographic goals. DOJ also alleged that certain training, partnerships, mentoring, leadership development programs and other opportunities were limited by race and sex.
• Under the second Trump administration, DOJ has used the False Claims Act to crack down on federal contractors’ diversity, equity and inclusion efforts. Deloitte agreed to pay $21.5 million to settle similar allegations in late August.

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DOJ alleged that company leaders received monthly demographic updates that included the race and sex of employees, “with the figures highlighted green, yellow, or red to indicate whether representation was at or exceeded AFS’ goal.”

“These demographic goals were designed to, and did, drive changes in hiring practices based on race and sex,” DOJ said. “For example, at the end of 2020 and beginning of 2021, AFS engaged in a round of entry level employee hiring to make further progress towards the company’s racial representation goals.”

Similarly, DOJ alleged Accenture provided for candidates who could advance its demographic goals to be more easily promoted by holding separate discussions about them, highlighting their names and developing a separate “pipeline” for them.

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