Fort Worth – Lockheed Martin announced a $29.5 million settlement to resolve federal allegations that the aerospace giant discriminated against white workers in its Compensation Adder pay program. The settlement, reached with the U.S. Department of Justice and the Equal Employment Opportunity Commission, includes $22 million paid to the government under the False Claims Act and roughly $7.5 million to more than 1,000 workers.
Background of the dispute
Former Lockheed vice president Tim Booher filed a whistleblower lawsuit in July 2025, claiming that two human‑resources officials in the company’s Aeronautics division instructed him in December 2022 to replace at least 18 white employees on a list for extra pay with an equal number of people of color. The Justice Department traced the controversy to the Compensation Adder program, launched in 2021 to award extra raises to up to 20 % of employees at each job level.
According to the government’s complaint, managers initially nominated workers based on merit, but Lockheed’s HR staff allegedly reviewed the lists for statistical outliers by race and sex and pressured managers to adjust selections to meet demographic targets. One HR employee reportedly told leaders that “increasing POC for Comp Adder will result in removing equal count of non‑minority.”
Settlement details
The Department of Justice says the settlement resolves claims that Lockheed used race or sex in hiring, promotions, and pay decisions, and that it tied a management pay metric to demographic goals. Under the agreement, Lockheed will pay $22 million plus interest to the United States, with $10 million designated as restitution. An additional $7.5 million will be distributed to the affected workers, and Booher is slated to receive $4.4 million plus interest from the federal recovery.
The EEOC’s 2025 charge alleged violations of Title VII of the Civil Rights Act, asserting that white employees were disadvantaged in performance reviews, bonuses, and other compensation. The EEOC agreement requires merit‑based hiring, pay, bonuses and promotions without regard to race or sex, and grants the agency authority to monitor compliance.
Company response
Lockheed Martin denied the allegations and admitted no liability. In a statement, the company said it settled “to avoid the distraction and expense of prolonged litigation,” emphasizing a desire to focus on its core mission of defending the nation’s security.
Impact on local operations
Lockheed’s Fort Worth facilities are a major hub for the F‑35 program. The Pentagon announced a $132.9 million modification for flight‑test support on one F‑35 contract, projecting that 30 % of the work will occur in Fort Worth. The Navy also awarded an $879 million order for armament work at the same site. The settlement does not affect those contracts, but it does bar Lockheed from charging federal contracts for the DOJ settlement and related costs.
Within 90 days of the agreement’s effective date, Lockheed must identify any prior billing to federal contracts for the disputed costs and repay any amounts the government has already paid. Federal agencies retain audit and debarment rights, ensuring ongoing oversight.
What this means for the community
The settlement underscores the importance of merit‑based employment practices in a city that relies heavily on defense‑industry jobs. While the settlement resolves the federal claims, it also serves as a reminder that companies operating in Fort Worth must adhere to anti‑discrimination laws and avoid using demographic quotas in compensation decisions.
Local leaders and workforce advocates have called for transparent hiring practices that reward performance and uphold the constitutional principle of equal protection under the law. The outcome of this case may influence how other large employers in the region structure their pay and promotion programs.
Original reporting: The Dallas Express — read the source article.
