In my recent interview with Federal News Network, I discussed the Department of Justice’s increasing use of the False Claims Act (FCA) to pursue allegations related to employment practices at federal contractors and what recent enforcement activity means for organizations that receive federal contract and grant funding. We explored recent settlements involving major government contractors and the broader implications for compliance and risk management.
I explained how the DOJ’s Civil Rights Fraud Initiative is driving greater scrutiny of employment, promotion, training, and other workplace practices. Recent settlements involving IBM, Deloitte, and Accenture demonstrate that the initiative is more than a policy priority; it is an active enforcement tool. As a result, federal contractors and grant recipients should be mindful of potential exposure under both federal and state false claims laws.
During our conversation, I examined the government’s legal theories in these cases and highlighted practical considerations for organizations assessing the effectiveness of their compliance programs. I emphasized the importance of close coordination among legal, compliance, and human resources teams when evaluating employment policies and practices, particularly for companies that receive federal funding.
These recent enforcement actions underscore the need for organizations to carefully review recruiting, hiring, training, promotion, mentorship, and leadership development programs to identify potential areas of risk as enforcement priorities continue to evolve.
The full episode, “A new False Claims Act case offers another example of how the government is enforcing the rules that apply to its contractors,” was released as part of The Federal Drive with Terry Gerton podcast on October 8 and is available online.