Business · Companies · 3 hrs ago
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.
Lockheed Martin agreed to pay $29.5 million to settle federal claims that it discriminated against white workers through an internal bonus program.
The settlement includes $22 million to the U.S. government and $7.5 million to more than 1,000 affected employees.
The company denied the allegations and said it did not admit liability.
The claims focused on a program introduced in 2021 that offered salary increases and promotion opportunities to top-performing employees.
The settlement followed complaints by former Lockheed Martin vice president Tim Booher, who will receive $4.4 million under a whistleblower provision.
- Who
- Lockheed Martin, the U.S. government and the Equal Employment Opportunity Commission (EEOC).
- What
- Lockheed Martin agreed to pay $29.5 million to settle claims that it discriminated against white workers.
- When
- The settlement was announced late Tuesday, November 3, 2026.
- Where
- The claims concerned Lockheed Martin’s internal bonus program. The settlement was announced by the Justice Department and the EEOC.
- Why
- The government alleged that the company’s diversity efforts led managers to add or remove employees from bonus selections based on race.
U.S. government and EEOC
Lockheed Martin
Allegations
U.S. government and EEOC
The government alleged that employees were added to or removed from bonus selections based on race.
Lockheed Martin
The company denied the allegations and said it did not admit liability.
Settlement
U.S. government and EEOC
The agencies said the settlement resolves claims concerning discrimination and federal contract requirements.
Lockheed Martin
The company said it agreed to settle to avoid the distraction and expense of prolonged litigation.
Lockheed Martin introduced a program offering the top 20% of employees a merit-based salary increase and promotion opportunities.
Tim Booher resigned from Lockheed Martin.
Booher said he met with EEOC Commissioner Andrea Lucas to detail his allegations.
Booher filed a complaint in federal court.
The Justice Department and EEOC announced the settlement.
- Total settlement
- $29.5 million
- Payment to U.S. government
- $22 million
- Payment to affected employees
- $7.5 million to more than 1,000 employees
- Whistleblower payment
- $4.4 million to Tim Booher
- Program introduced
- 2021
2 sources
What people are saying
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
felt that he could no longer be complicit in LMC’s illegal discrimination