Accenture Federal Services, Accenture plc and Accenture LLP have agreed to pay $25 million to the US government to resolve allegations that the company violated federal contracting requirements by using race and sex in employment decisions. The settlement involves alleged violations of the False Claims Act.
Allegations Cover Hiring and Promotions
The US Department of Justice alleged that Accenture Federal Services (AFS) falsely certified that it complied with federal anti-discrimination requirements while, between 2017 and the present, taking race and sex into account in employment decisions.
According to the allegations, AFS used internal demographic targets covering the racial and gender composition of its workforce. Business-unit leaders received monthly reports showing representation against these goals, with performance categorised using colour-coded indicators.
The government alleged that these targets influenced hiring decisions, including entry-level recruitment in late 2020 and early 2021.
Promotion Decisions Also Under Scrutiny
The allegations extended beyond recruitment to promotions.
The Justice Department said AFS gave additional visibility to candidates who would help advance its race or sex demographic goals during managing-director promotion discussions. The company allegedly highlighted certain candidates and created a separate pipeline of potential promotion candidates based on those objectives.
The government also alleged that some training, mentoring, leadership development and educational programmes restricted eligibility based on race or sex.
One programme, called Amplify to Elevate, allegedly operated between August 2022 and February 2025 and limited participation based on race.
$25 Million Settlement
Under the settlement agreement, Accenture will pay the United States $25 million, including civil penalties and interest. Of that amount, $11.627 million is designated as restitution.
The agreement resolves the government’s civil claims under the False Claims Act and related statutes and common-law theories concerning the alleged conduct.
However, the settlement does not constitute a determination of liability. The Justice Department explicitly stated that the claims resolved through the agreement are allegations only.
Accenture Denies Discrimination
Accenture has denied engaging in discriminatory practices and said it complied with applicable laws.
The company agreed to the settlement without admitting liability, saying that it cooperated with the government’s review and wanted to avoid the costs and resources associated with prolonged litigation.
The settlement comes amid a broader US government crackdown on diversity, equity and inclusion practices at organisations that receive federal contracts.
Part of Wider Government Action
Accenture’s settlement follows a similar agreement involving Deloitte, which agreed to pay $21.5 million in August to resolve allegations involving race- and sex-based employment practices.
The Justice Department has increasingly used the False Claims Act to pursue federal contractors accused of falsely certifying compliance with contractual anti-discrimination requirements.
The Accenture case therefore represents another major development in the Trump administration’s broader effort to challenge workplace DEI practices among companies doing business with the federal government.
Summary: Accenture has agreed to pay $25 million to resolve US government allegations that its federal-services business used race and sex in hiring, promotion and employee-development decisions while falsely certifying compliance with federal contracting requirements. Accenture denies discrimination and has not admitted liability. The settlement resolves allegations rather than establishing wrongdoing.
