IBM Embroiled in $17 Million Settlement Over Alleged DEI Practices

The tech giant has entered a settlement agreement with the U.S. DOJ, citing "illegal" hiring practices.

IBM has entered a $17 million settlement agreement with the U.S. Department of Justice (DOJ) over allegations that it engaged in "illegal" Diversity, Equity, and Inclusion (DEI) practices. The DOJ alleged that IBM took into account factors such as "race, color, national origin, or sex" in its hiring and promotions, and used funds from its government contract for DEI programs before seeking reimbursement.

IBM denied any wrongdoing in the settlement, stating that its workforce strategy is driven by a single principle: "having the right people with the right skills that our clients depend on." This statement suggests that IBM is committed to its current hiring practices, despite the allegations raised by the DOJ.

• The settlement marks the first time the government has secured a resolution under the Civil Rights Fraud Initiative, which was announced last year.

• The initiative involves filing claims against recipients of federal funds who "knowingly violate civil rights laws." In this case, IBM received federal funds as a government contractor.

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