Accenture Agrees to USD 25 Million DOJ Settlement Over Hiring Allegations
Accenture has agreed to pay USD 25 million to resolve allegations that it violated federal contracting rules by using race and s*x in employment and promotion decisions. The settlement, brought under the False Claims Act, resolves claims of false compliance certifications. Scroll below to know more about the case.
Accenture Federal Services, Accenture plc, and Accenture LLP have agreed to pay USD 25 million to the United States to settle allegations that the consulting firm violated federal contracting requirements by falsely certifying compliance with anti-discrimination provisions. The settlement, announced by the US Department of Justice, resolves claims that Accenture Federal Services (AFS) failed to uphold equal employment opportunity obligations between 2017 and the present while submitting formal certifications to the federal government.
Allegations of Race and S*x Considerations
Under federal contracting laws, companies are required to maintain equal employment opportunities and ensure that hiring and promotion choices are made without regard to race or s*x, reports the US Department of Justice. US Student Visa Update: Judge Blocks Donald Trump Administration’s 4-Year Limit, Relief for Indian Students.
According to the Justice Department, AFS nonetheless factored race and s*x into employment decisions as part of an effort to hit internal workforce demographic targets. The government alleged that business unit leaders received monthly performance reports highlighting racial and gender metrics in colour-coded formats (green, yellow, or red) depending on whether targets were met or missed.
These internal benchmarks allegedly influenced recruitment decisions, including entry-level hiring cycles conducted between late 2020 and early 2021, as well as promotions to managing director positions. The DOJ also claimed that certain mentorship, training, and leadership development programs - such as the "Amplify to Elevate" program running from August 2022 to February 2025 - restricted participation based on race.
Official Reactions and Legal Basis
The agreement was reached under the False Claims Act, which permits the government to penalise entities that make false statements or compliance certifications in connection with federal funds and contracts. “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 echoed those sentiments, emphasising the conditions attached to public funds: “A company cannot take taxpayer dollars, certify that it is following that simple principle, and then use race or s*x as a factor in deciding who gets an opportunity.” What Is the US On-Orbit Space Weapon Just Revealed by the Air Force?
No Admission of Liability
The Justice Department noted that the settlement resolves allegations only and does not constitute a formal determination or admission of liability by Accenture. The investigation and resolution were handled through a coordinated effort by the DOJ’s Civil Division, the Commercial Litigation Branch, the Fraud Section, and the U.S. Attorney’s Office for the Northern District of Illinois.
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(The above story first appeared on LatestLY on Sep 15, 2026 03:33 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
