# DOJ Scrutinizes Contractor Employment Practices

Three False Claims Act-related settlements involving IBM, Deloitte, and Accenture have drawn attention to how employment practices may be treated in connection with federal contract compliance. The reported settlements include Deloitte’s $21.5 million federal settlement, announced August 25, 2026, and related settlements of $1.2 million each with Indiana and Florida; IBM’s settlement was reported in April 2026 and Accenture’s on September 14, 2026. The settlements do not constitute admissions of liability. For federal contractors and grant recipients, the cases underscore potential scrutiny of hiring, promotion, training, mentorship, and related employment policies, as well as possible state False Claims Act exposure.

- Contractors and grant recipients can review employment-related representations and policies with their legal, HR, and government-contract compliance teams, as described in the reporting.
- The Deloitte matter involved both federal and state settlements; organizations should account for potential state False Claims Act exposure as well as federal exposure.
- The settlements indicate that employment practices may be considered in assessing contractor compliance, making this relevant to organizations’ contract-related controls and representations.

**Jurisdictions:** federal
**Industries:** Information Technology
**Topics:** Regulatory Compliance
**Published:** October 08, 2026

### Government Entities
- U.S. Department of Justice (DOJ)
- U.S. government
- State of Indiana
- State of Florida

### Vendors
- IBM ()
- Deloitte ()
- Accenture ()

### Key Quotes
> Contractors shouldn't just be looking at potential federal exposure, but also state exposure.
> — Richard Arnolt, Partner at Bass, Berry & Sims

### Sources
- [
        A new False Claims Act case offers another example of how the government is enforcing the rules that apply to its contractors - Federal News Network](https://federalnewsnetwork.com/podcast/federal-drive-with-terry-gerton-podcast/a-new-false-claims-act-case-offers-another-example-of-how-the-government-is-enforcing-the-rules-that-apply-to-its-contractors) - Federal News Network
- [
        A new False Claims Act case shows how the government is enforcing the rules on contractors - Federal News Network](https://federalnewsnetwork.com/management/2026/10/a-new-false-claims-act-case-shows-how-the-government-is-enforcing-the-rules-on-contractors) - Federal News Network