IBM has agreed to settle US Justice Department allegations that the company violated civil rights laws with its DEI practices. According to a press release from the DOJ, IBM will pay more than $17 million to resolve allegations that it took into account “race, color, national origin, or sex” when making employment decisions. The agreement is the latest development in the Trump administration’s long-running effort to end DEI programs, which began with an executive order as early as 2025.
IBM denied any wrongdoing and said the settlement was not an admission of liability, while the US government said it was not a concession to the finding that its claims were not well-founded, according to the settlement agreement. According to the DOJ, IBM had violated the Civil Rights Act of 1964 with practices that included changing “interview criteria based on race or sex”, “developing race and gender demographic targets for business units”, “using a diversity modifier that tied bonus compensation to achieving demographic targets”, and more.
An IBM spokesperson told Engadget in an email that the company is “pleased to resolve this matter,” adding that “Our workforce strategy is driven by the same principle: having the right people with the right skills that our customers depend on.”
The action is one of the first proposals to come out of the Civil Rights Fraud Initiative, which was launched in May 2025, according to Todd Blanch, the agency’s acting Attorney General. IBM isn’t the only company to change its policies, T-Mobile and Meta both agreed to end their DEI initiatives last year.
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