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The Tennessee Conservative [By Paula Gomes] –
Consulting firm Deloitte is under investigation by the Tennessee Attorney General’s office over potential diversity, equity, and inclusion (DEI) hiring practices.
Earlier this year, the AG’s office ordered Deloitte, the largest accounting firm worldwide, to hand over records regarding hiring practices and DEI programming. In the letter requesting the information, the AG’s office said that the purpose of asking for the records was part of an “unlawful discrimination” investigation which could make the company in violation of state law.
Deloitte, which has two offices in Tennessee, one in Hermitage and the other in nearby Nashville, manages the eligibility system for TennCare, making it one of the largest vendors working for the state. The company announced at the beginning of the year that it would cut its DEI transparency report and programming, as well as diversity goals that were previously in place.
The state’s investigation follows a 2023 Supreme Court decision that prohibits affirmative action based on race at institutions of higher learning – Students for Fair Admissions v. Harvard.
After the SCOTUS decision, the Tennessee AG’s office sent a letter to Fortune 100 CEOs in July 2023, along with a dozen other states, calling on them to end DEI programs that treat people differently because of the color of their skin.
President Donald Trump also signed an Executive Order in February that demanded that all federal contractors end DEI programs that violate anti-discrimination law and called on the Department of Labor to stop “promoting diversity.”
The records that were ordered to be turned over by August 4th, included documents and communication from 2022 and on, covering a wide range of topics. On the list of topics were how Deloitte evaluated applicants regarding their racial status or gender, and how the company was making sure it was in compliance with anti-discrimination requirements in light of the 2023 SCOTUS decision.
The system that Deloitte created and maintains that determines Medicaid eligibility for applicants automatically is worth over $971 million. Of that, the state is responsible for funding over $163 million. The 10-year contract is up for renewal in fiscal year 2026.
The state is taking compliance with anti-DEI state and federal laws seriously, with the Tennessee lawmakers recently voting on a rule change regarding the state’s equal employment opportunity (EEO) plan.
The rule change removes references to women, minorities, individuals with disabilities, and veterans in order to come into alignment with President Donald Trump’s executive order which ends affirmative action in government employment, and also a new state law that forbids Tennessee from taking age, ethnicity, race, or sex into consideration when making hiring decisions.
In the past, Tennessee’s EEO plan tracked the hiring of “protected classes” while analyzing patterns of employment to ensure that the state government was not practicing discrimination.
As a result of the joint Government Operations Committee’s vote, the state’s new plan will focus instead on “certain groups in the workforce based on federal and/or state law requirements.”
Senator Rusty Crowe (R-Johnson City-District 3) referred to four laws passed last year which prohibit diversity, equity, and inclusion (DEI) practices mostly at the state government level and at state universities while affirming that the rule change was needed.
During the committee meeting, Crowe said those laws, two of which he co-sponsored, did away with DEI in hiring, as well as other practices.
According to Senator Rusty Crowe (R-Johnson City-District 3) who referred to four laws passed last year which prohibit DEI practices mostly at the state government level, the rule change is not about hiring fewer women, minorities, or veterans, but about hiring people who are the most qualified for the position.
About the Author: Paula Gomes is a Tennessee resident and reporter for The Tennessee Conservative. You can reach Paula at paula@tennesseeconservativenews.com.
