Lockheed to pay $30 million to settle Trump administration claims over DEI practices
LMT•Lockheed Martin agreed to pay nearly $30 million to settle federal claims that its DEI policies discriminated against white workers. The settlements include $22 million to resolve claims over federal contract certifications and $7.5 million for more than 1,000 employees.
1. Settlement terms
Lockheed Martin agreed to pay nearly $30 million to settle claims by the Trump administration that its workplace diversity, equity and inclusion policies discriminated against white workers. The settlements include $22 million to resolve claims that the company falsely certified compliance with anti-discrimination laws while favoring non-white workers in hiring, promotion and pay, and $7.5 million for more than 1,000 affected employees.
2. Company response and claims
Lockheed denied the allegations and said it settled to avoid prolonged litigation, adding that it did not admit liability. Federal agencies alleged that a 2021 incentive program awarding additional annual pay increases to the top 20% of employees in each business area was influenced by workers’ demographics, and that race or sex also factored into some hiring, promotion, training and mentoring decisions.
3. Whistleblower case
The Justice Department’s claims stemmed from a whistleblower lawsuit filed last year by former Lockheed vice president Tim Booher, who will receive $4.4 million. The EEOC said the class of workers involved is the largest publicly announced in one of its cases involving DEI practices.
