Military contractor Lockheed Martin has agreed to pay almost $30 million to settle federal allegations that it discriminated against workers for being white.
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it → agree → workers
The defense giant agreed to the settlement to resolve allegations that it discriminated against its white employees in compensation, bonuses and performance reviews, the Department of Justice said in a news release Thursday.
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Department → agree → release
The DOJ said Lockheed agreed to pay $29.5 million, with $22 million going to the federal government and roughly $7.5 million to over 1,000 employees.
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million → say → employees
Allegations that the defense contractor was discriminating against its white employees were first raised in 2021, when Lockheed began handing out bonuses through a 'compensation adder' program.
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Lockheed → discriminate → program
Prosecutors said managers initially gave raises based on performance, but human resources personnel pressured executives to remove white employees in favor of minority staff members.
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personnel → say → members
The move was intended to address statistical disparities and comply with diversity, equity and inclusion (DEI) policies, prosecutors said.
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prosecutors → intend → policies
It was further alleged that Lockheed would hire employees based only on their race or sex, and restricted access to training and leadership programs to those who did not fit the mold.
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who → allege → mold
The Trump administration celebrated the settlement this week as a victory over DEI policies, which it has worked to dismantle across a number of industries over the past two years.
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it → celebrate → years
Military contractor Lockheed Martin has agreed to pay almost $30 million to settle federal allegations that it discriminated against workers for being white
The Trump administration celebrated the settlement this week as a victory over DEI policies, which it has worked to dismantle across a number of industries over the past two years.
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it → agree → years
President Trump is pictured with Lockheed Martin CEO Tim Taiclet in September 2026
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Trump → picture → September
In a statement following the settlement, Associate Attorney General Stanley Woodward said the huge penalty should serve as a warning to other companies blindly following DEI standards.
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penalty → follow → standards
'Companies, especially those that do business with the federal government, should not make DEI compensation decisions that prioritize an employee's race over the merit of their work,' the prosecutor said.
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prosecutor → do → work
This is the Department’s fourth False Claims Act settlement resolving allegations of racial discrimination against employees.
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The Department remains steadfast in its commitment to eliminating woke, unconstitutional practices from workplaces of companies that receive federal taxpayer funds.
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that → remain → funds
Prosecutors said Lockheed was caught prioritizing DEI in paying its staff when it rolled out the 'compensation adder' program in 2021, which gave the top 20 percent of employees a salary bump.
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which → say → bump
When managers nominated employees for the bonuses, Lockheed then implemented a system to 'flag' statistical outliers based on race and sex, per Fox5.
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Lockheed → nominate → Fox5
The system then made managers review their flagged nominations, and the 'merit-based basis for the selections, without asking them to take any protected characteristic into account', the DOJ said.
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DOJ → make → account
Lockheed Martin is a key military defense contractor for the White House in its war with Iran
The scandal led to the resignation of Lockheed Martin vice president Tim Booher in May 2023, who said he felt the need to leave his lucrative job because he 'could not longer be complicit' in the company's 'illegal discrimination'
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The scandal led to the resignation of Lockheed Martin vice president Tim Booher in May 2023, when he filed a complaint with authorities over the issue.
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he → lead → issue
Booher said he felt the need to leave his lucrative job because he 'could not longer be complicit' in the company's 'illegal discrimination.'
Following the settlement, Booher will receive a payment of $4.4 million under whistleblower provisions of the False Claims Act.
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Booher → say → Act
Lockheed Martin has previously denied the federal allegations, but said it agreed to the settlement 'to avoid the distraction and expense of prolonged litigation.
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it → deny → litigation
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'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,' the company said in a statement.
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company → admit → statement
The Daily Mail has contacted Lockheed Martin for further comment.
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