IBM to pay $17M to settle discrimination claims tied to federal contracts


IBM Agrees to M Settlement Over Federal Contract Discrimination Allegations

IBM’s employment practices came under scrutiny as the Justice Department accused the tech giant of violating federal contract regulations by incorporating race and sex considerations in its hiring processes.

WASHINGTON — The International Business Machines Corporation, better known as IBM, has consented to a $17 million settlement following allegations of breaching anti-discrimination requirements tied to its federal contracts, as announced by the Justice Department. This settlement, amounting to $17,077,043, represents the inaugural case resolved under the Civil Rights Fraud Initiative. This initiative, spearheaded by Acting Attorney General Todd Blanche in May 2025, aims to curb violations of civil rights legislation by companies benefiting from federal funding.

Federal authorities asserted that IBM fell short of adhering to anti-discrimination clauses embedded in government contracts. These clauses demand that contractors must refrain from discriminating against employees or applicants based on race, color, national origin, or sex.

Acting Attorney General Blanche emphasized the gravity of the issue, stating, “Racial discrimination is illegal, and government contractors cannot evade the law by repackaging it as DEI.” He went on to highlight the role of the Civil Rights Fraud Initiative in identifying and addressing such misconduct, holding violators accountable, and striving to eradicate these practices.

The Justice Department’s allegations point to IBM’s employment strategies, which reportedly factored in race or sex in various aspects such as hiring, promotions, and compensation decisions. These practices allegedly extended to tying bonuses to demographic objectives, implementing “diverse interview slates,” and restricting access to certain training, mentorship, and leadership programs based on race or sex.

According to the Justice Department, IBM maintained employment practices that allegedly considered race or sex in hiring, promotions and compensation decisions. That included tying bonuses to demographic targets, using “diverse interview slates,” and limiting access to certain training, mentorship and leadership programs based on race or sex. 

The government also alleged IBM set demographic goals for business units and factored those into employment decisions. 

IBM cooperated with the investigation and took steps to address the concerns, including modifying or ending some of the programs in question, officials said. 

The settlement resolves the allegations without any determination of liability. 

You May Also Like

Las Vegas man Juan Orona allegedly killed girlfriend, her 2 kids in 'blackout' rage after she admitted cheating

Las Vegas Man Accused of Killing Girlfriend, Her 2 Kids in Blackout Rage After Cheating Admission

A Las Vegas man is accused of fatally shooting his girlfriend and…
Coast Guard recovers 47 bales of suspected marijuana worth $2.4M after intercepting go-fast vessel

Coast Guard Seizes $2.4M Marijuana Haul From Go-Fast Vessel

The U.S. Coast Guard seized more than 2,000 pounds of suspected marijuana,…
‘This is real bad’: 911 call reveals frantic moments after autistic daughter, 5, vanished in South Carolina

911 Call Captures Panic After 5-Year-Old Autistic Girl Vanishes in South Carolina

A 911 call placed shortly after a 5-year-old autistic girl vanished from…
Chicago weather forecast: Extreme Heat Warning in effect for part of Cook County; CPS adjusts outdoor activities

Chicago Weather: Extreme Heat Warning Issued for Part of Cook County as CPS Adjusts Outdoor Activities

CHICAGO () — The Chicago area faced another round of sweltering conditions…
Christian missionaries kicked out of Burning Man in wild culture clash as group accused of breaking festival rules

Christian Missionaries Removed From Burning Man Amid Alleged Rule Violations and Culture Clash

Burning Man is underway in Nevada’s Black Rock Desert, where the 10-day…
Sneak peek inside highly anticipated Lucas Museum of Narrative Art in California's Exposition Park

First Look Inside LA’s Stunning Lucas Museum of Narrative Art

A first look at the new Lucas Museum of Narrative Art arrives…
Toddler falls from iconic Jersey Shore boardwalk sky ride in frightening scene

Toddler Falls From Iconic Jersey Shore Boardwalk Sky Ride in Terrifying Scene

A terrifying moment on the Jersey Shore sent visitors rushing to react…
Kristi Noem offers cringeworthy take on Markwayne Mullin’s emergency landing in a Coast Guard plane

Kristi Noem’s Cringey Take on Markwayne Mullin’s Plane Scare

WASHINGTON — Kristi Noem turned a frightening aviation scare involving her successor…
Terrence Bradshaw, the Wisconsin dad who tripped football player, 9, admits he was 'impulsive'

Wisconsin Dad Terrence Bradshaw Admits ‘Impulsive’ Move After Tripping 9-Year-Old Football Player

A Wisconsin father accused of tripping a 9-year-old football player as the…
Dr. Phil blasts Pentagon for ignoring legitimate UFO reports from the public

Dr. Phil Slams Pentagon for Dismissing Credible UFO Reports From the Public

Dr. Phil McGraw is taking aim at the Pentagon, accusing officials of…
SoCal In-N-Out hero uses spatula to fend off stick-wielding maniac

SoCal In-N-Out Worker Fends Off Stick-Wielding Attacker With Spatula

A Southern California In-N-Out Burger customer armed with nothing more than a…
Saylor Hayes' mom seen in video telling locals her non-verbal daughter is missing, praying she 'fell asleep'

Video Shows Saylor Hayes’ Mom Pleading for Help After Nonverbal Daughter Goes Missing, Hoping She ‘Fell Asleep’

Before five-year-old Saylor Hayes was discovered dead in a South Carolina waterway,…