Source: Fortune
Summary
PayPal has agreed to a $30 million settlement with the Department of Justice (DOJ) over a 2020 program that guaranteed a $530 million investment for Black and minority-owned businesses. The DOJ claimed the program was unlawful under the Equal Credit Opportunity Act. PayPal will waive $30 million in processing fees for $1 billion in small business transactions and launch a new program for veteran-owned small businesses or those in farming, manufacturing, or technology. The settlement stipulates that PayPal admits to no wrongdoing and will not pay a separate fine.
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PayPal’s $30 million settlement with the DOJ is the latest example of the government’s crackdown on diversity, equity, and inclusion (DEI) initiatives. The company will waive $30 million in processing fees for small businesses, but the agreement does not require PayPal to admit wrongdoing. The settlement comes on the heels of IBM’s $17 million settlement with the DOJ over its DEI programming. Experts say the two settlements are linked and signal the administration’s willingness to scrutinize companies’ past DEI practices.
The settlement also highlights the ongoing debate over DEI initiatives in corporate America, with some arguing that they are still widespread despite the Trump administration’s claims to have ended them.
Author: Evan Null
