Lockheed Martin agreed to pay about $29.5 million to resolve federal allegations that it used race or sex in employment decisions and falsely certified compliance with anti-discrimination requirements in its federal contracts, the U.S. Department of Justice said Tuesday. The company denied the allegations and admitted no liability. It said it settled to avoid the distraction and expense of prolonged litigation.
Under the agreements, Lockheed will pay $22 million plus interest to the United States under the False Claims Act. It will also pay about $7.5 million to more than 1,000 workers under a separate agreement with the U.S. Equal Employment Opportunity Commission. The Justice Department said the alleged conduct dates to 2019. Tim Booher, a former Lockheed vice president, filed a whistleblower suit in Fort Worth in July 2025. Under the agreement, he will receive $4.4 million plus a share of interest.
The Justice Department said the dispute involved Compensation Adder, a program that began in 2021 and offered extra raises to up to 20% of employees at each job level in a business area. It alleged some HR staff pressed managers to change their picks based on race. Booher's amended complaint alleged that HR officials told him in December 2022 to replace at least 18 white employees on the list with an equal number of racial minority employees. The agreement bars Lockheed from charging federal contracts for the settlement and related costs.