IBM has agreed to pay $17 million to settle a case brought by the U.S. Department of Justice over its diversity, equity and inclusion (DEI) practices.
The settlement resolves allegations that the company used hiring and promotion policies that considered factors such as race, gender, and national origin in ways that violated federal anti-discrimination rules tied to government contracts. The DOJ also claimed that some DEI-related programs and bonuses were linked to diversity targets.
IBM has denied any wrongdoing, and the settlement does not include an admission of liability. The company said it was pleased to resolve the matter and reiterated that its hiring approach is based on skills and business needs.
The case is part of a wider crackdown by U.S. authorities on corporate DEI programmes, particularly within companies that receive federal funding or work on government contracts. Officials have argued that such programmes must comply strictly with anti-discrimination laws.
As part of the resolution, IBM has agreed to pay the penalty and make changes to certain internal practices. The government said the case was handled under a civil rights enforcement initiative aimed at ensuring compliance with federal rules.
The settlement marks one of the more high-profile actions involving a major technology company and highlights growing legal and political scrutiny around DEI policies in corporate America.
While IBM maintains that it acted lawfully, the case underscores how companies are increasingly being required to reassess workplace diversity initiatives to align with evolving regulatory expectations.
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