Is DEI dead in U.S. workplaces? IBM’s settlement raises new questions for HR

Glasgow also explained that although exposure to the False Claims Act is limited to federal contractors, private employers aren’t off the hook. He pointed to a growing wave of Equal Employment Opportunity Commission (EEOC) investigations into DEI practices at major brands, including Nike, a Coca‑Cola distributor, and Planned Parenthood, based on alleged violations of Title VII of the Civil Rights Act of 1964.

In his view, every large employer, not just contractors, should be reviewing DEI policies and programs just as carefully, because “they’re going after different organizations that have nothing to do with the False Claims Act, but they’re just alleging violations of federal anti-discrimination law.”

Read more: EEOC chair signals ‘attack’ to DEI employment rights 

Robert Raben, founder and president of public policy firm The Raben Group and a former U.S. assistant attorney general, sees the IBM settlement less as a shift in the law and more as a test of corporate leadership.

“It really is about leadership of the companies, at this point,” he said. “People are paying attention.”