Lockheed Martin to pay $29.5m over discrimination claims

Summarised from 3 outlets · Updated 5 Nov, 21:10 · Archive

Defence contractor Lockheed Martin has agreed to pay $29.5 million to settle federal allegations that its diversity and equity initiatives led to discrimination against white workers. The company will pay $22 million to the US government to resolve claims that it breached anti-discrimination rules tied to its federal contracts, with a further $7.5 million going to over 1,000 affected employees.

The allegations centred on Lockheed Martin's 'compensation adder' bonus program, which began in 2021. The Daily Mail reports that prosecutors said managers initially gave raises based on performance, but human resources personnel pressured executives to remove white employees in favour of minority staff members to address statistical disparities and comply with diversity, equity and inclusion policies.

The Equal Employment Opportunity Commission had been investigating Lockheed Martin over allegations that it violated Title VII of the Civil Rights Act of 1964, which prohibits employment discrimination based on race. In a statement, Lockheed Martin rejected 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 settlement represents the Trump administration's use of the 1863 False Claims Act to compel federal contractors to abandon diversity, equity and inclusion programmes. Historically used to prosecute financial fraud, the administration has applied the law to companies it claims engage in racial discrimination under the guise of workplace inclusion. The Department of Justice has previously reached comparable settlements with IBM, Deloitte and Accenture.

How it is being reported

• White workers get $30million after claiming employer Lockheed Martin discriminated against them based on their raceMilitary contractor Lockheed Martin has agreed to pay almost $30 million to settle federal allegations that it discriminated against workers for being white.Daily Mail · 5 Nov, 21:01
• Lockheed Martin paying $29.5M settlement after allegedly discriminating against white workersDefense 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.New York Post · 5 Nov, 00:55
• Lockheed Martin to pay $29.5 million settlement for discrimination against white workersThe Department of Justice has previously reached comparable legal settlements with major corporate contractors, including IBM, Deloitte, and AccentureIndependent World · 4 Nov, 23:14

In this story: Lockheed Martin · Department of Justice · Equal Employment Opportunity Commission · Donald Trump · United States

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log