IBM agreed to settle charges from the U.S. Department of Justice that the company violated civil rights laws with its Practical God. According to a press release DOJ, IBM will pay more than $17 million to resolve allegations that “race, color, national origin or sex” was considered when making employment decisions. The deal is the latest development in a long-running effort by the Trump administration to end DEI programs, which was launched from a decree early 2025.
IBM denied any wrongdoing and said the settlement did not constitute an admission of liability, while the U.S. government said the finding did not constitute a concession that its claims were without merit, according to the settlement agreement. According to the DOJ, IBM had violated the Civil Rights Act of 1964 by changing “interview criteria based on race or gender,” developing “race and gender demographic goals for business units,” using “a diversity modifier that tied bonus pay to the achievement of demographic goals” and more.
An IBM spokesperson told Engadget in an email that the company “is pleased to have resolved this issue,” adding that “our workforce strategy is driven by one principle: having the right people with the right skills that our customers depend on.”
According to Todd Blanche, the agency’s acting attorney general, this action is one of the first resolutions emerging from the Civil Rights Fraud Initiative, launched in May 2025. IBM is not the only company changing its policies, with both T-Mobile And Meta agreeing to end its DEI initiatives last year.
This article was originally published on Engadget at https://www.engadget.com/big-tech/ibm-settles-its-dei-lawsuit-with-the-doj-for-17-million-153749285.html?src=rss