DOJ’s Use of False Claims Act to Challenge DEI Moves from Theory to Practice: What Businesses Need to Know

As 2025 drew to a close, the Wall Street Journal (WSJ) reported on December 28 that the U.S. Department of Justice (DOJ) is continuing to use the False Claims Act (FCA) to scrutinize diversity, equity, and inclusion (DEI) initiatives at major U.S. companies that do business with the federal government.What You Need to Know:FCA Investigations Are Scrutinizing DEI Programs. DOJ is poised to aggressively use the FCA to investigate and pursue claims against private employers that contract with the government or seek government funding for allegedly maintaining “illegal” workplace DEI programs.Focus on DEI Program Implementation. DOJ is examining not just the policies but also how DEI programs are implemented and how they allocate benefits or burdens.Continued Risks for Companies with DEI ProgramsAccording to the WSJ article, DOJ is investigating well-known employers—including in the technology and telecommunications sectors—and demanding documents and information about workplace... Read the complete article here...©2026 Epstein Becker & Green, P.C. All rights reserved.