Deloitte Services LP, a firm providing internal support to Deloitte LLP, has agreed to pay $275,000 in back pay and interest to 34 female employees. This settlement resolves allegations of wage discrimination at its Hermitage, Tennessee, worksite. The issues were identified during a routine compliance review by the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP).
The OFCCP found that Deloitte Services LP paid female employees in technology services in Hermitage, Tennessee, less than their male counterparts. Additionally, the federal contractor failed to adequately evaluate female placement rates into certain positions within the Market Development function in Atlanta, Georgia, and the Workplace Services function in Hermitage, Tennessee. The company, which provides services for large-scale federal contracts including market development, sales, security, finance, accounting, technology, and administrative services, denies the allegations.
As part of the resolution, Deloitte Services LP will ensure its compensation policies and pay procedures are free from discrimination. The company will also provide training to managers, supervisors, and other officials involved in pay decisions at its Tennessee and Georgia locations. This action underscores the U.S. Department of Labor's commitment to combating pay discrimination and ensuring fair compensation for all employees, according to OFCCP Deputy Director Patricia Davidson.
Separately, Deloitte is also under investigation by the Tennessee Attorney General's Office for potential unlawful discrimination related to its hiring practices and diversity, equity, and inclusion (DEI) programs. The AG's office requested records related to these programs, following a 2023 Supreme Court decision on affirmative action and a letter from state attorneys general to Fortune 100 companies. Deloitte, which manages Tennessee's Medicaid eligibility system, announced in February that it would end its DEI programming and workforce diversity goals. The firm's contract with the state for managing the Medicaid eligibility system is valued at over $971 million, with $163 million from state funds.
Shaun Harper, a professor at the University of Southern California and an advisor on DEI strategy, defended Deloitte, stating that the company has a strong reputation and that the investigation is unlikely to uncover widespread discrimination. He called the investigation insulting to Deloitte and a misuse of Tennessee taxpayer dollars. The Tennessee AG's office has not provided an update on the status of this investigation, which demanded records from Deloitte by August 4th.
