Business · Companies · 3 hrs ago

Lockheed Martin to pay $29.5 million to settle discrimination claims

Lockheed Martin to pay $29.5 million to settle discrimination claims

Lockheed Martin agreed to pay $29.5 million to settle US government claims that it discriminated against white workers.

The claims focused on a bonus and promotion program the defense contractor introduced in 2021.

The company used race and sex data to flag unusual patterns in managers’ nominations, but the Justice Department said employees were pressured to change selections based on race.

The settlement includes $22 million for the US government and $7.5 million for affected employees.

More than 1,000 employees are expected to share the employee payment.

Lockheed Martin denied the allegations and did not admit liability, saying it wanted to avoid the cost and distraction of a prolonged court case.

The case is part of the Trump administration’s use of a fraud law to challenge diversity practices at federal contractors, with similar settlements involving IBM, Deloitte and Accenture.

The settlement resolves the government claims, while civil rights groups continue to challenge the administration’s anti-diversity policies in court.

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What people are saying

Lockheed MartinCompany
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.
via AP
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
via AP
Tim BooherFormer Lockheed Martin vice president
felt that he could no longer be complicit in LMC’s illegal discrimination
via AP