IBM has agreed to settle the US Department of Justice’s accusations that the company violated civil rights laws with its DEI practices. According to a press release from the DOJ, IBM will pay more than $17 million to resolve allegations of taking “race, color, national origin, or sex” into account when making employment decisions. This settlement is the latest development in a longstanding effort from the Trump administration to end DEI programs, which was kick-started from an executive order in early 2025.
IBM denied any wrongdoing and said the settlement wasn’t an admission of liability, while the US government said this conclusion wasn’t a concession that its claims weren’t well founded, according to the settlement agreement. According to the DOJ, IBM had violated the Civil Rights Act of 1964 with practices that included altering “interview criteria based on race or sex,” developing “race and sex demographic goals for business units,” using “a diversity modifier that tied bonus compensation to achieving demographic targets” and more.
