Accenture to pay $25 million to settle US claims over alleged employment discrimination

According to a statement issued by the US Department of Justice, the settlement resolves allegations that AFS, a federal contractor, failed to comply with equal employment opportunity requirements between 2017 and the present while certifying to the government that it was meeting those obligations.

Federal contracts generally require contractors to provide equal employment opportunities and certify that employment decisions are made without regard to race or sex.

The US government alleged that AFS nevertheless took race and sex into consideration in hiring and promotion decisions as part of efforts to meet internal, non-public workforce demographic goals.

According to the allegations, business unit leaders received monthly reports showing the racial and gender composition of their units.

The figures were reportedly highlighted in green, yellow or red depending on whether representation met or exceeded company targets, was within 5 per cent of the target, or fell more than 5 per cent below it.

The Justice Department alleged that these demographic targets influenced hiring practices, including during a round of entry-level recruitment conducted around the end of 2020 and beginning of 2021.

The government further alleged that race and sex were considered in promotion decisions. During reviews for managing director promotions, candidates who could advance AFS' demographic goals were allegedly given additional visibility among senior leaders involved in promotion decisions.

AFS also allegedly used colour-coded lists and separate promotion pipelines to identify candidates who would further the company's demographic objectives, according to the DOJ.

The allegations also extend to training, mentoring, leadership development and educational programmes. The department said that some opportunities were restricted based on race or sex.

One programme cited by the US government was AFS' Amplify to Elevate, which operated from August 2022 to February 2025.

The DOJ alleged that participation was reserved for employees based on race and that the programme was intended to improve participants' career prospects through mentorship and networking opportunities.

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

"Today's resolution makes unmistakably clear that the Department will continue to aggressively pursue unconstitutional discriminatory employment practices," he added.

Assistant Attorney General Brett A Shumate of the Justice Department's Civil Division said federal contractors have an obligation to make employment decisions without regard to race or sex.

"A company cannot take taxpayer dollars, certify that it is following that simple principle, and then use race or sex as a factor in deciding who gets an opportunity," Shumate said.

The Justice Department said the settlement was reached under the False Claims Act, which allows the government to pursue entities that allegedly make false statements or certifications in connection with federal programmes and contracts.

The department said the resolution was part of broader efforts by the Trump administration to combat fraud, waste and abuse in federal programmes. Earlier this year, the administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division to strengthen enforcement against alleged fraud involving government funds.

The settlement was reached through a coordinated effort involving the Justice Department's Civil Division, Commercial Litigation Branch, Fraud Section and the US Attorney's Office for the Northern District of Illinois.

The Justice Department clarified that the claims resolved by the settlement are allegations only and that there has been no determination of liability. (ANI)