Accenture agrees to $25 million DOJ settlement over hiring practices

Accenture has agreed to a $25 million settlement with the U.S. Department of Justice to resolve allegations that its federal contractor subsidiary, Accenture Federal Services (AFS), considered race or sex in its hiring decisions, violating federal anti-discrimination requirements, according to CRN.

The Department of Justice alleged that AFS violated the False Claims Act by falsely certifying compliance with federal contractor rules, which prohibit discrimination based on race or sex. Specific allegations include AFS providing monthly reports to business unit leaders that highlighted racial and gender representation, sometimes using color-coding to indicate whether units met or exceeded diversity goals. The DOJ also claims AFS managers discussed whether candidates advanced demographic goals and allegedly used rankings to ensure women and ethnic minorities were considered for promotions.

Furthermore, an "Amplify to Elevate" training program was reportedly reserved for employees based on race, and AFS allegedly recruited additional entry-level employees in 2020 and 2021 to meet specific racial demographic targets after an initial hiring round. Accenture denies the allegations and states the settlement is not an admission of liability, aiming to avoid the costs of prolonged litigation. This settlement follows similar agreements by Deloitte and IBM with the DOJ over diversity practices.

Source: CRN