The U.S. Department of Justice has launched a civil rights fraud initiative that will use the False Claims Act (FCA) to investigate federal contractors’ civil rights violations, DOJ announced May 19.
The initiative will be led jointly by DOJ’s Civil Division’s Fraud Section — which enforces the False Claims Act, and DOJ’s Civil Rights Division — which enforces civil rights laws. The False Claims Act is implicated when federal contractors certify their compliance with civil rights laws while knowingly engaging in racist policies and programs — including diversity, equity, and inclusion (DEI) activities, DOJ said in a related memorandum.
The Justice Department is encouraging private citizens, including employees and job applicants, to use the False Claims Act’s qui tam provisions to file lawsuits against contractors that they suspect of discrimination. Liability under the False Claims Act can result in triple damages and significant penalties. When a qui tam action succeeds, the whistleblower typically receives a portion of the funds recovered.
Members of the Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, can read more here.