Labor & Employment Law Daily Wrap Up, DOJ NEWS—Accenture agrees to pay $25M to the U.S. government for DEI efforts, (Sep 15, 2026)

By Brandi O. Brown, J.D.

DOJ alleged that AFS took race or sex into account when making hiring decisions to achieve progress toward “non-public workforce composition goals.”

According to an announcement by the Justice Department, Accenture has agreed to pay the U.S. government $25 million to resolve allegations that the employer violated the False Claims Act by failing to comply with anti-discrimination requirements in federal contracts and by allegedly engaging in race and sex discrimination. Of that amount, the settlement agreement notes, $11.6 million is restitution. Payment is to be made within 14 days of the agreement’s effective date.

The settlement resolves allegations that from 2017 to the present, Accenture Federal Services (AFS) falsely certified compliance with contractual EEO conditions, while engaging in discriminatory employment practices. The government also asserted that the company submitted claims for payment under federal contracts that included costs associated with those challenged programs and activities.

“Federal contractors have a straightforward obligation: make employment decisions without regard to race or sex,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division.

Reports. DOJ alleged that AFS used race and sex as factors in hiring, promotions, and career development programs to advance internal workforce representation goals. Business leaders received monthly reports showing workforce demographics by race and sex, with color-coded indicators measuring progress toward company targets. According to the government, these goals influenced hiring decisions, including an entry-level hiring initiative in late 2020 and early 2021 aimed at increasing racial representation.

Promotions. According to the government, race and sex played a role in promotion decisions, particularly for managing director positions, through separate discussions of candidates who advanced demographic goals, special highlighting of those candidates during reviews, and development of a promotion pipeline aligned with those objectives. In addition, the government claimed that AFS limited eligibility for certain training, mentoring, leadership development, and educational programs based on race or sex.

One cited example was the “Amplify to Elevate” program, which operated from August 2022 through February 2025 and restricted participation by race. The government alleged that the program provided mentorship, networking, and professional development opportunities intended to improve participants’ career prospects.

“Opportunity and promotion in the workplace must be earned through merit,” said Associate Attorney General Stanley E. Woodward Jr.

Cooperation credit and denial. In addition to what was described by the DOJ in its announcement, the settlement agreement also states that Accenture received cooperation credit from the government during the investigation. At the same time, the company expressly denied the government's allegations and maintained that the settlement does not constitute an admission of liability or wrongdoing.

Finally, the agreement makes clear that it does not restrict the authority of the EEOC to investigate or pursue employment-discrimination claims arising from the same underlying conduct, preserving the possibility of separate administrative or enforcement actions.

Companies: Accenture Federal Services (AFS); Accenture plc; Accenture LLP

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