Deloitte is the latest company to pay millions to avoid being targeted over DEI

For the last year, the Justice Department has been quietly probing high-profile companies over their diversity, equity, and inclusion policies. Deloitte settled one such investigation earlier this week, agreeing to pay $21.5 million to address allegations that the company had violated federal law by taking race and gender into consideration when deciding who to hire and promote. The government alleged that Deloitte had used “discriminatory race and sex-based employment practices” since 2017, failing to comply with the anti-discrimination measures imposed on federal contractors. “Government contractors cannot reward or penalize employees based on race or sex—and labeling the practice DEI does not make it lawful,” U.S. attorney general Todd Blanche said in a statement. The Justice Department took issue with Deloitte tracking demographic data and tying diversity goals to executive compensation, and also noted that some of the company’s DEI policies specifically applied to employees who worked on federal contracts. When reached for comment, a Deloitte spokesperson said, “We are pleased to have resolved this matter to avoid the cost and distraction of protracted litigation, allowing us…