Lockheed Martin paying $29.5M settlement after allegedly discriminating against white workers

Defense contractor Lockheed Martin has agreed to pay $29.5 million to settle claims by President Donald Trump’s administration that it discriminated against white workers through its efforts to promote diversity and equity in an internal bonus program.Lockheed Martin will pay $22 million to the US government to resolve claims that it failed to comply with anti-discrimination requirements in its federal contracts, according to the settlement announced late Tuesday by the Justice Department and the Equal Employment Opportunity Commission.In addition, Lockheed Martin will pay $7.5 million to more than 1,000 affected employees as part of a settlement with the EEOC, which had been investigating the company for violating Title VII of the 1964 Civil Rights Act, which prohibits employment discrimination based on race.In a statement, Lockheed Martin denied the government’s allegations but said it “agreed to resolve this matter with the Department of Justice and the Equal Employment Opportunity Commission to avoid the distraction and expense of prolonged litigation.”“We did not admit liability, determining it would be best for all involved to put these matters behind us so we can remain focused on our critical national security mission,” the company said.The case is the latest example of the Trump administration’s use of the 1863 False Claims Act to pressure federal contractors into abandoning diversity, equity and inclusion practices.The law states that contractors that make false claims to the government could be liable for extensive damages.

Typically used to police fraud, the Trump administration has invoked the False Claims Act against companies it maintains have pursued discriminatory practices under the guise of promoting diversity.The Justice Department has reached similar settlements with IBM, Deloitte and Accenture.Civil rights groups have criticized the Trump administration’s policies for taking aim at many long-established practices that are aimed...