Lockheed Martin Agrees to $29.5M Settlement Over Workplace Discrimination Claims

On November 2, 2026, the U.S. Department of Justice and the U.S. Equal Employment Opportunity Commission announced a two-part settlement with Lockheed Martin Corporation. Headquartered in Bethesda, Maryland, the company agreed to pay approximately $29.5 million to resolve allegations of employment discrimination and related false certifications of compliance with federal civil rights laws.

The resolution addresses government claims that the defense contractor improperly factored race and sex into employment decisions. This includes $22 million paid to the United States to settle False Claims Act allegations and roughly $7.5 million distributed to over 1,000 workers through a negotiated EEOC agreement.

How the Settlement Breaks Down

The Justice Department’s portion of the settlement stems from allegations that Lockheed falsely certified compliance with federal contract requirements. Federal contracts typically require companies to provide equal employment opportunity without regard to race or sex. Prosecutors alleged that from 2019 onward, Lockheed falsely certified adherence to these rules while operating discriminatory programs.

The EEOC portion resolves a 2025 Commissioner’s Charge filed by EEOC Chair Andrea Lucas. That charge alleged that Lockheed violated Title VII of the Civil Rights Act by discriminating against white employees in performance assessments, bonuses, and compensation decisions through programs like its Compensation Adder initiative.

Allegations Regarding the Compensation Adder Program

According to government allegations, Lockheed operated an incentive program called the Compensation Adder, which awarded the top 20% of employees in each business area with an extra pay increase. While managers were initially instructed to use merit-based criteria, the United States alleged that the company performed statistical checks to flag demographic outliers based on race and sex.

The government alleged that certain human resources personnel pressured business group leaders to clear these demographic flags by removing non-minority employees and adding minority employees who had not been initially nominated. The company was also accused of tracking quantitative demographic goals for women and minorities in management plans and offering certain leadership development programs based on race or sex.

Whistleblower Involvement and Relief

The False Claims Act settlement includes a whistleblower action brought under the law’s qui tam provisions. A private party, former Lockheed Vice President Tim Booher, filed the action on behalf of the government and will receive $4,400,000 as part of the resolution.

Under the EEOC agreement, over 1,000 affected employees will share approximately $7.5 million in monetary relief. In addition to these payouts, the EEOC agreement requires Lockheed to comply with Title VII and Executive Order 14151, maintaining a workplace where race and sex are not considered in employment decisions.

What This Means for Workers

This settlement primarily impacts individuals covered by the specific government charges and highlights federal scrutiny of corporate diversity, equity, and inclusion practices. Employees who believe they have faced discrimination based on race or sex can review their workplace rights under federal law.

If you suspect you have experienced unlawful discrimination or have documentation of hiring or compensation practices that violate civil rights laws, keeping detailed records is crucial. Consulting an employment law attorney can help you understand your legal options and determine whether you are eligible to file a charge.

This article is general information based on U.S. Department of Justice and court or agency records available at publication time. It is not legal advice; laws and deadlines differ by state and by case. Published November 4, 2026.