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


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

Maine ICE shooting victim was not target of arrest warrant, Sen. King’s office says after earlier DHS account

Sen. King Says Maine ICE Shooting Victim Was Not Target of Arrest Warrant, Challenging DHS Account

A man shot and killed by an ICE agent in Maine on…
NYC nabe sees 37% surge in rat sightings in 2026 – even as reports dip citywide

NYC Neighborhood Reports 37% Jump in Rat Sightings Despite Citywide Drop

Rat-a-fooey! Manhattan’s East Village is seeing rats make an unwelcome comeback, with…
GOP Sen. Marshall: Gulf States Should 'Finish the Job' with Iran, 'We've Done Our Job'

GOP Sen. Marshall Says Gulf States Should Finish the Job on Iran as U.S. Has Done Its Part

During Monday’s edition of CNN’s “The Source,” Sen. Roger Marshall (R-KS) addressed…
Trump-backed Daylight Saving Time bill clears key House hurdle

Trump-Backed Daylight Saving Time Bill Advances After Key House Vote

A bipartisan effort to establish permanent Daylight Saving Time is moving toward…
Driver somehow escapes death after plunging 600 feet off cliff — but ends up in cuffs anyway

Driver Survives 600-Foot Cliff Plunge, Then Gets Arrested

A suspected drunken driver somehow lived through a fiery 600-foot fall from…
American biologist shot dead in his home in the Philippines

American Biologist Fatally Shot Inside His Home in the Philippines

American biologist Kent Carpenter, 73, was fatally shot Sunday inside his residence…
North Carolina senior Joan Rivet survives nine days trapped in bathtub after fall

North Carolina Senior Joan Rivet Rescued After Surviving 9 Days Trapped in Bathtub

An 82-year-old North Carolina woman says she survived nine terrifying days trapped…
Iran-backed terror proxy Houthis threaten fresh attacks after Yemen airport strike

Iran-Backed Houthis Threaten New Attacks After Yemen Airport Strike

The U.S.-designated terrorist Houthi movement, which controls much of northern Yemen, accused…
Migrant who fled Ireland after American mother's murder is arrested in Jordan

Suspect in American Mother’s Murder in Ireland Arrested in Jordan After Fleeing Country

A man who left Ireland after the violent killing of an American…
United passenger says crew ordered him to change controversial T-shirt before he could travel

United Passenger Claims Crew Made Him Change Controversial T-Shirt Before Boarding

Greg Gutfeld SLAMS Sunny Hostin’s ‘unsafe around American flags’ claim Fox News…
Deputy US Marshal fatally shot while serving arrest warrant in Louisiana

Deputy US Marshal Killed While Serving Arrest Warrant in Louisiana

A deputy U.S. marshal was shot and killed Monday while attempting to…
Deputy US Marshal fatally shot while serving arrest warrant in Louisiana

Deputy U.S. Marshal Fatally Shot During Louisiana Arrest Warrant Operation

Suspect arrested in Virginia sheriff’s deputy shooting after two-day manhunt Michael Puckett,…