IBM settles federal DEI probe for $17 million.

IBM settles federal DEI probe for $17 million. The tech giant agreed to resolve allegations it violated the False Claims Act by maintaining discriminatory employment practices in federal contracts. The Justice Department's Civil Rights Fraud Initiative claimed IBM used a "diversity modifier" tying bonus compensation to demographic targets and restricted certain training and leadership programs based on race or sex. This marks the first resolution from the initiative launched to crack down on DEI policies. IBM must comply with anti-discrimination requirements mandating fair hiring and employment practices without bias based on race, color, national origin, or sex. The settlement reflects ongoing government scrutiny of corporate diversity initiatives under the current administration's policy direction.