Labor & Employment Law Daily Wrap Up, INDUSTRY NEWS, TRENDS—WilmerHale creates False Claims Act Task Force, (May 28, 2025)
Organizations Mentioned:Wilmer Cutler Hale & Dorr, LLP | Wilmer Hale, LLP
By Patricia K. Ruiz, J.D.
The Task Force comes in response to a move by the DOJ to expand its use of the False Claims Act to investigate and pursue claims against any recipient of federal funding.
Law firm Wilmer Cutler Pickering Hale and Dorr LLP (WilmerHale) has announced its launch of a False Claims Act (FCA) Civil Rights Task Force in response to the legal and regulatory risks posed to its clients by the changes under the Trump administration in enforcement related to diversity, equity, and inclusion (DEI) programs assigning benefits or burdens based on race, ethnicity, or national origin, as well as certain policies relating to gender identity and issues relating to antisemitism.
Requirements for federal contractors, grant recipients. On January 21, 2025, President Donald J. Trump issued an executive order (EO) titled, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” The EO sought to eliminate DEI policies and programs across the federal government and within private industries that do business with the federal government. The EO reversed federal contracting requirements obligating federal contractors and subcontractors to implement affirmative action programs and imposing new requirements targeting organizations with DEI programs.
Pursuant to the EO, on May 19, 2025, the Department of Justice (DOJ) announced the formation of its Civil Rights Fraud Initiative, expending its use of the FCA to investigate and pursue claims against any recipient of federal funding that “knowingly violates civil rights laws” and “falsely certifies compliance with such laws.” In its memorandum, the DOJ set forth the administration’s current view of what constitutes a potential violation, highlighting violations related to DEI programs, gender identity, and antisemitism. The DOJ in its memorandum strongly encouraged private whistleblowers to bring qui tam actions under the FCA.
WilmerHale explained that the DOJ’s initiative “marks a notable escalation in government scrutiny and enforcement risk for grant recipients and federal contractors. Grant recipients and federal contractors must now navigate new terms and conditions on awards and contracts and negotiate a heightened enforcement environment in which proactive compliance reviews and risk assessment and mitigation are essential.
FCA Civil Rights Task Force. WilmerHale indicates that its Task Force will assist clients in: (1) conducting proactive compliance reviews to identify and address potential vulnerabilities in DEI and civil rights-related programs; (2) navigating new federal contract and grant requirements, including certifications of compliance with civil rights laws; (3) responding to government inquiries and whistleblower complaints under the FCA and other statutory and regulatory schemes; (4) developing defensible compliance frameworks that account for constitutional protections, including First Amendment concerns around viewpoint discrimination; and (5) litigating cases brought by the government or private party relators under the DOJ’s new initiative.
Law Firms: Wilmer Cutler Pickering Hale and Dorr LLP
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