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

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…
The United States Senate and Key White House Officials Continue the Tributes to Sen. Lindsey Graham

Senate and White House Leaders Honor Lindsey Graham in Wave of High-Profile Tributes

In the days since Sen. Lindsey Graham (R-S.C.) died unexpectedly late Saturday,…
Hegseth announces joint task force with DOJ to prosecute leaks to journalists 'with the full force of the law'

Pete Hegseth Unveils DOJ Task Force to Crack Down on Leaks to Journalists

Pentagon chief Pete Hegseth announced Monday that the Defense Department is forming…
Nancy Guthrie search scene drew YouTubers, arrests and bizarre roadside claims, docs say

Nancy Guthrie Search Scene Spiraled Into YouTuber Chaos, Arrests and Bizarre Roadside Claims, Court Docs Reveal

A true-crime YouTuber is accused of transforming a street near the Nancy…
2026 ESPY Awards return to NYC: Presenters, attendees, musical performances and more

2026 ESPY Awards Return to New York City: Presenters, Attendees, Performers and What to Know

NEW YORK — Some of the world’s top athletes are set to…
Gotham FC star Jaedyn Shaw is inspiring the next generation of players

Gotham FC Star Jaedyn Shaw Inspires Next Generation of Soccer Players

WHIPPANY, N.J. — Gotham FC is preparing for a landmark night at…
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…
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…
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…
Trump administration probes UNRWA over alleged employment of 1,500 terrorists

Trump Administration Investigates UNRWA Over Claims 1,500 Terrorists Were on Payroll

U.S. officials are investigating the United Nations Relief and Works Agency, the…
'Explosive diarrhea' parasite invades Long Island as separate bacteria outbreak sickens dozens after music festival

Diarrhea-Causing Parasite Spreads on Long Island as Separate Festival Bacteria Outbreak Sickens Dozens

A parasite widely known for causing severe, prolonged diarrhea has sickened 17…
FBI offers $15K reward for tips after newborn found dead in Electric Forest music festival porta-potty

FBI Announces $15,000 Reward for Tips After Newborn Found Dead at Electric Forest Festival

The FBI is offering a $15,000 reward for information that leads to…