Lockheed Martin agreed to pay nearly $30 million to resolve federal claims that its diversity programs discriminated against white workers, the latest and largest public settlement in the Trump administration’s campaign to dismantle corporate DEI initiatives through the courts.
The settlement breakdown
The deals, announced Oct. 3 but disclosed by agencies on Wednesday, split roughly $22 million to the Justice Department and $7.5 million to the Equal Employment Opportunity Commission for distribution to more than 1,000 affected employees. A former vice president, Tim Booher, whose whistleblower suit triggered the Justice Department action, will receive $4.4 million. Booher now serves as an advisor to the Pentagon, according to his LinkedIn profile.
The government's case
Prosecutors allege that a 2021 incentive program called Compensation Adder awarded the top 20 percent of employees in each business unit extra annual pay. Managers were initially directed to use merit-based criteria, but the Justice Department claims Lockheed pressured some to revise their selections based on the demographics of the workers chosen. The agencies also allege the company considered race or sex in hiring, promotion, training and mentoring decisions to meet internal diversity targets.
Lockheed's response
The company denied the allegations and said it settled to avoid protracted 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," Lockheed said in a statement.
The broader pattern
The agreement follows similar DOJ settlements with IBM, Accenture and Deloitte as the administration pursues DEI policies across private employment, government, education and healthcare. EEOC Chair Andrea Lucas, a Trump appointee, said the Lockheed class is the largest publicly announced in an agency case involving DEI practices. "Federal law protects every worker from employment discrimination on the basis of race, and that protection does not yield when discriminatory decisions are framed as diversity initiatives," Lucas said.