Federal Targets, First Settlement Underscore Corporate DEI Risks

Partner O'Kelly E. McWilliams III was quoted in a Bloomberg Law article on the U.S. Department of Justice's (DOJ) increasing scrutiny of certain corporate diversity, equity and inclusion (DEI)-related practices, highlighted by its first settlement under the government's "civil rights fraud" initiative involving a federal contractor. The article examined how shifting enforcement priorities are leading companies to reassess internal programs, subcontractor oversight and compliance certifications under the False Claims Act. Mr. McWilliams advised federal contractors to extend compliance review to subcontractors, observing that some organizations' practices could expose liability in the current regulatory environment.

"If you are being a careful and diligent federal contractor, you have to at least take some kind of review and get some guidance from your subcontractors to ensure that they are in full compliance," he said.

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