The U.S. Department of Justice (DOJ) has launched a new “Civil Rights Fraud Initiative,” outlined in a May 19, 2025, memorandum from the Deputy Attorney General. This initiative aims to vigorously enforce federal civil rights laws by utilizing the False Claims Act (FCA) against entities that defraud the United States while knowingly violating these laws.
The DOJ emphasizes its commitment to enforcing federal civil rights laws and ensuring equal protection under the law. The FCA is identified as the DOJ’s primary tool against government fraud, waste, and abuse, with liability resulting in treble damages and significant penalties.
What This Means for Employers
Employers, particularly those who are federal contractors or recipients of federal funds, need to be acutely aware of this initiative. The FCA can be implicated when a federal contractor or recipient of federal funds knowingly violates civil rights laws and falsely certifies compliance with such laws. This includes, but is not limited to, violations of Title IV, Title VI, Title VII, and Title IX of the Civil Rights Act of 1964.
The memo specifically highlights several areas of concern:
- Discrimination based on protected characteristics: The FCA can be implicated if federal-funding recipients or contractors certify compliance with civil rights laws while knowingly engaging in racist preferences, mandates, policies, programs, and activities. This includes Diversity, Equity, and Inclusion (DEI) programs that assign benefits or impose preferences or quotas based on race, ethnicity, or national origin. The DOJ reinforces the principle that eliminating racial discrimination means eliminating all of it.
- False Certification of Compliance: Knowingly violating civil rights laws while falsely certifying compliance with them can trigger FCA liability.
- Examples of Potential Violations: While the memo focuses on educational institutions, the principles can extend to other federal funding recipients. Examples provided include situations where a university accepting federal funds encourages antisemitism, refuses to protect Jewish students, allows “men to intrude into women’s bathrooms”, or requires women to compete against men in athletic competitions.
The Civil Rights Fraud Initiative will be co-led by the Civil Division’s Fraud Section and the Civil Rights Division. All 93 United States Attorney’s Offices will have an Assistant United States Attorney dedicated to these efforts. The initiative will also involve coordination with other federal agencies that enforce civil rights requirements for federal funding recipients, such as the Departments of Education, Health and Human Services, Housing and Urban Development, and Labor. Partnerships with state attorneys general and local law enforcement will also be established.
Next Steps for Employers
While the use of the law is likely to be met with legal challenges, to mitigate potential risks under this new initiative, employers who are federal contractors or recipients of federal funds should take the following actions:
- Conduct a thorough review of all internal policies, practices, and programs to ensure full compliance with federal civil rights laws, including Title VII of the Civil Rights Act of 1964, as well as Executive Order 14173.
- Carefully review any Diversity, Equity, and Inclusion (DEI) programs or policies to ensure they do not impose preferences, establish quotas, or confer benefits based on race, ethnicity, or national origin, as such practices may be considered discriminatory.
- Ensure that all certifications of compliance with civil rights laws submitted to the federal government are accurate and truthfully reflect the organization’s practices.
- Educate human resource personnel, managers, and employees on federal civil rights laws and the importance of compliance to prevent unintentional violations.
- Seek expert legal advice to navigate the complexities of civil rights compliance and the False Claims Act, particularly concerning federal funding or contracts and civil rights obligations under state and local laws.
How HR Works Can Help
HR Works offers tailored services to ensure your organization remains compliant while aligning with your values and workforce needs.
- Policy & Program Review
- Evaluate affirmative action programs and analyses, DEI programs, workplace policies, and training initiatives to ensure compliance with federal directives while addressing state and local protections.
- Compliance Assistance
- Provide policy guidance to align with federal mandates while adhering to local and state laws.
- Perform comprehensive HR assessments to ensure compliance with applicable laws and best practices.
- Strategic Guidance
- Address conflicts between federal, state, and local laws with practical compliance strategies.
- Develop clear communication plans to explain policy changes and reinforce your organization’s commitment to inclusion and fairness.
Current HR Works clients may contact their designated HR or AA/EEO consultant for additional information. Virtual Helpline clients may contact the Virtual Helpline for additional guidance and support.
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At HR Works, we specialize in helping employers confidently navigate complex regulatory landscapes. Our expertise ensures your organization remains compliant while fostering an inclusive, respectful workplace.
To learn more about how HR Works can help you, contact us today.
