Lockheed Martin has agreed to pay approximately US$29.5 million in parallel settlements with the Justice Department and Equal Employment Opportunity Commission over alleged race- and sex-based employment decisions and related federal-contract certifications.
Under the Justice Department agreement, US$22 million will resolve False Claims Act allegations that Lockheed certified compliance with federal equal-opportunity requirements while using race or sex in compensation, hiring and promotion practices. A former company vice-president who brought a whistleblower case will receive US$4.4 million from that recovery.
A separate EEOC agreement provides more than US$7.5 million for over 1,000 employees. The Commission’s charge alleged race discrimination against white employees in performance reviews, bonuses and other compensation decisions, including through a programme that gave additional pay increases to selected workers.
Federal authorities alleged that some human-resources staff used demographic flags to press business leaders to add or remove particular workers from compensation selections based on race. They also challenged workforce-composition goals and access to some training, mentoring and leadership programmes. Those assertions remain allegations resolved by agreement, not findings reached after trial.
Lockheed cooperated with the investigations. In addition to the payments, the EEOC agreement requires continuing compliance measures and allows the Commission to review performance during the agreement’s term. The agencies stated that neither settlement determines liability.
The Justice Department’s announcement, including links to the agreements and the related whistleblower case, is available here.
