The Trump administration has launched investigations into the use of diversity initiatives in hiring and promotion at major U.S. companies. The Justice Department is investigating under the umbrella of the False Claims Act. The Act is traditionally used for work that was not performed, or that was overpriced.
The Justice Department believes that a federal contractor adhering to diversity in hiring is committing fraud. The President’s executive order demands that racist DEI (Diversity, Inclusion, and Equity) not be included in hiring, firing, and promotions.
DEI violates the US Constitution.
Google and Verizon Communications are among the companies that have received Justice Department demands for documents and information about their workplace programs, according to people familiar with the investigations.
Other companies facing probes are industries ranging from automotive and pharmaceuticals to defense and utilities. The list of all the companies is unavailable.
Google and Verizon declined to comment.
Before this new approach, false-claims investigations were initiated by a whistleblower or an internal government watchdog who notified the Justice Department of alleged fraud. The DEI probes, however, have been spurred by politically appointed officials in the department. Officials who believe companies with contracts aren’t abiding by their obligations to the government by following DEI rules.
The Weapon to Stop DEI
In a May enforcement memo, Deputy Attorney General Todd Blanche ordered a new initiative. It directed the department “to investigate and, as appropriate, pursue claims against any recipient of federal funds” who knowingly engages in preferences that create benefits or burdens based on race, ethnicity, or national origin.
Blanche’s memo warned that private-sector companies with government contracts will be penalized for discrimination.
Blanche said the Act is the “weapon” used to go after corporations and schools that “continue to adhere to racist policies.”
Lawyers who practice in the area said it is unusual. They claimed the Justice Department is pursuing hot-button conservative policy objectives. However, critics would say Marxist DEI is a far-left hot-button issue.
Lisa Dykstra, a partner at Morgan Lewis, said companies have been closely re-evaluating their workplace policies in light of the federal government’s stance. She called the use of the act “unique.”
What is also “unique” is a company using Marxist discrimination in the US, given the basis of our Constitution is “all men are created equal.”
