IBM has settled US Department of Justice accusations regarding violations of civil rights laws related to its Diversity, Equity, and Inclusion practices, agreeing to pay over $17 million.
The settlement addresses allegations that IBM considered “race, color, national origin, or sex” in its employment decisions and is part of a broader push against DEI programs initiated by the Trump administration through an executive order in early 2025.
The DOJ claimed IBM violated the Civil Rights Act of 1964 by implementing policies such as altering interview criteria based on race or sex, setting demographic goals for business units, and using a diversity modifier to tie bonuses to demographic targets.
IBM denied any wrongdoing, asserting that the settlement does not constitute an admission of liability. The settlement agreement also clarifies that the US government’s claims were not discredited. An IBM spokesperson stated, “We are pleased to have resolved this matter,” while emphasizing their workforce strategy is focused on having the right skills for clients.
Todd Blanche, the acting attorney general, noted that this settlement is among the inaugural resolutions from the Civil Rights Fraud Initiative launched in May 2025.
IBM joins other companies like T-Mobile and Meta, which have also modified their DEI initiatives in the past year.
