ST. LOUIS — Missouri Attorney General Andrew Bailey has filed a lawsuit against International Business Machines Corporation (IBM) for violating the Missouri Human Rights Act.
Bailey claims in the lawsuit that IBM imposes unlawful racial and gender quotas on job applicants and determines current employees’ pay and employment status based on their participation in these discriminatory practices.
Bailey claims that this policy favors applicants of certain skin colors and punishes managers who do not comply, potentially leading to their termination.
Bailey said IBM's policies blatantly favor applicants of a certain skin color over others.
"Discrimination in the workplace violates both state and federal law, which is why I am filing this lawsuit," Bailey said in a provided statement. "Missourians deserve answers as to why one of the largest technology and consulting companies in the world, with offices based in Missouri, is discriminating against both prospective and current employees. As long as I’m Attorney General, discrimination will be dead on arrival in this state."
In the lawsuit, Bailey claims that IBM allegedly forces its executives to adhere to race, color, national origin, sex and ancestry-based quotas through its "diversity modifier."
Meeting these quotas results in a bonus while failing to do so can lead to a loss of bonus or termination, the complaint filed June 20 in St. Louis County Circuit Court states.
Bailey claims this practice violates Chapter 213 of the Revised Statutes of Missouri, which protects against unlawful discrimination.
Citing the Supreme Court case Students for Fair Admissions, Inc. v. Harvard, the complaint argues that IBM’s quotas amount to unconstitutional racial balancing.
The lawsuit details eight specific violations attributed to IBM in which it was alleged to be inciting, compelling or coercing unlawful discriminatory practices; aiding or abetting unlawful discriminatory practices; limiting, segregating or classifying employment applicants unlawfully; unlawful printing or circulation; unlawful employment inquiry; unlawful employment application form; failing or refusing to hire individuals unlawfully; and retaliation or discrimination against those opposing IBM’s unlawful practices.
"It is an unlawful discriminatory practice for an employer to fail or refuse to hire any individual, or otherwise to discriminate against any individual with respect to his or her compensation, terms, conditions, or privileges of employment, because of such individual’s race, color, national origin, sex, or ancestry," Bailey said in the provided statement.
The complaint notes that on Dec. 11, 2023, a video featuring IBM’s CEO Arvind Krishna and Red Hat’s Paul Cormier was released, showing Krishna addressing diversity, equity and inclusion efforts.
In the video, Krishna admitted IBM uses race-based hiring quotas, requiring executives to increase underrepresented minority representation by 1% annually, impacting their bonuses.
He stated this might limit opportunities for non-target groups like Asians. Red Hat’s DEI progress was criticized for lacking accountability.
Cormier admitted executives not meeting these standards were held accountable, even losing jobs, the complaint states.
IBM aimed for specific demographic quotas, which some argue constitutes illegal racial balancing under U.S. law, according to the suit.
Bailey is seeking for IBM to be permanently enjoined from enforcing the diversity quotas and for any relief deemed necessary.