As the saying goes, “To be forewarned is to be forearmed.” American companies doing business with the federal government have once again been forewarned about the risks of engaging in DEI practices. To ignore these warnings can be very costly for the company, its shareholders, and employees.
Just four months ago, IBM paid more than $17 million to resolve allegations that it maintained illegal diversity, equity, and inclusion practices while performing federal contract work. That settlement was the first resolution under the Justice Department’s Civil Rights Fraud Initiative. It was also a clear warning. Last week, President Donald Trump’s DOJ announced that another top federal contractor has agreed to pay $21.5 million to settle similar allegations.
