The Justice Department has announced that Deloitte and several affiliated entities agreed to pay $21.5 million to resolve allegations that they violated the False Claims Act by failing to comply with anti-discrimination obligations in federal contracts and by discriminating against employees and applicants. The settlement involves Deloitte LLP, Deloitte Consulting LLP, Deloitte Touche LLP, Deloitte Financial Advisory Services LLP, and Deloitte Transactions and Business Analytics LLP.

The case is significant not simply because of the dollar amount, but because it reflects the government’s continuing use of the Civil Rights Fraud Initiative. That initiative treats alleged workplace discrimination by federal contractors as more than a traditional employment-law problem.

The Department of Justice has announced that IBM will pay approximately $17.1 million to resolve allegations that the company violated anti-discrimination obligations tied to its federal contracts. According to DOJ, IBM’s diversity, equity, and inclusion practices allegedly discriminated on the basis of race, color, national origin, or sex, creating potential False Claims Act exposure when the company sought payment under contracts requiring compliance with federal non-discrimination rules.

The settlement is significant not only because of the dollar amount, but because it reflects a notable enforcement theory at the intersection of employment law, government contracting, and civil fraud.