Justice Department Investigating Companies Over Diversity Hiring Practices

The Trump administration has launched investigations into several companies over their use of diversity initiatives in hiring and promotion decisions.

The Justice Department is using the False Claims Act to justify the probes. That law was originally designed to hold federal contractors accountable for billing the government for work that was never performed. The department is now applying it to companies that hold federal contracts while factoring diversity into employment decisions—arguing that doing so constitutes fraud.

The Wall Street Journal reports that Alphabet and Verizon have both received demands to turn over documents as part of the investigations. Neither company has publicly commented on the matter.