Lockheed Martin will pay $29.5 million to settle claims it discriminated against white workers through an internal bonus program, according to USA Today. The company reached this agreement with the Department of Justice and the Equal Employment Opportunity Commission to resolve allegations that it violated federal contract anti-discrimination requirements.
Settlement Payment Terms
Lockheed Martin will pay $22 million to the U.S, according to Nypost. government to resolve False Claims Act allegations. The company will also pay $7.5 million to more than 1,000 employees affected by the alleged discrimination.
The dispute involves a 2021 bonus program intended to provide salary increases to the top 20 percent of employees in each business area. Managers chose employees based on merit, but the Justice Department alleged the company used statistical analyses to flag lists by race and sex.
The Justice Department stated that personnel exerted pressure on leaders in their business group to resolve race-related ‘flags’ by directing them to add or remove particular employees based on race.
The government alleged managers were pressured to remove non-minority employees from selection lists while adding racial minorities.
Whistleblower and Official Inquiry
Tim Booher, a former vice president at Lockheed Martin, triggered the investigation. Booher resigned in May 2023 because he felt that he could no longer be complicit in LMC’s illegal discrimination.
He filed a federal complaint in October 2025.
Booher will receive $4.4 million from the settlement under the False Claims Act whistleblower provision. He met with Andrea Lucas in July 2024 to discuss his concerns.
Lucas became chair of the Equal Employment Opportunity Commission in January 2025 and filed a commissioner’s charge
against the company. Regarding the resolution, Lucas noted, Title VII protects every worker from employment discrimination on the basis of race — and that protection does not yield when discriminatory decisions are framed as diversity initiatives.
Lockheed Martin Settles Allegations Without Admitting Liability
Lockheed Martin denied the allegations but settled to avoid the distraction and expense of prolonged litigation.
The defense contractor said, 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.
Attorneys for Booher called the agreement an amicable conclusion that avoids prolonged litigation and ensures statutory compliance in federal contracting.
The government previously reached settlements regarding DEI-related practices with IBM, Deloitte and Accenture.