Lockheed Martin has agreed to approximately $29.5 million in two employment-related settlements announced by the Justice Department November 3. That total combines $22 million for the United States with approximately $7.5 million for over 1,000 affected employees under a separate Equal Employment Opportunity Commission agreement.
Two remedies, different recipients
The federal agreement resolves False Claims Act allegations that Lockheed falsely certified compliance with anti-discrimination requirements in its government contracts while discriminating against employees and applicants because of race or sex. The agreement says Lockheed denies the covered conduct and the allegations in the civil action. It is not an admission of liability.
The EEOC settlement resolves a commissioner's charge alleging race discrimination against white employees in performance assessments and bonus and other compensation decisions. DOJ says the claims resolved by both settlements are allegations only, with no determination of liability.
The federal agreement identifies $10 million of its $22 million settlement amount as restitution. It also provides for a $4.4 million whistleblower share, plus a proportionate share of interest, to be paid by the United States after it receives the settlement money. That share is part of the federal recovery arrangement, not another amount added to the announced total.
Compensation decisions and compliance
The government alleges that some human-resources personnel pressured business leaders to change selections for the company's Compensation Adder pay-increase program based on race. Its allegations also concern hiring, promotion and access to development opportunities. These are the government's contentions, not findings independently established here.
According to DOJ, the separate EEOC agreement requires compliance with Title VII and Executive Order 14151 and a merit-based workplace in which race and sex are not considered in hiring, compensation, bonus or promotion decisions. The EEOC may review compliance during the agreement's term.
What the payment record establishes
The federal agreement requires payment of the $22 million, plus specified interest, no later than 14 days after its effective date. That federal payment provision does not supply the timetable for distributing the separate employee relief.
The announcement and federal agreement do not establish that employees have received money or that compliance reviews have occurred. The separate EEOC agreement and aggregate payment or compliance records would be needed to examine those questions without disclosing private employees' compensation information.