Two legal organizations are alleging that tech firms have discriminated against older white employees in their efforts to promote diversity, equity, and inclusion (DEI). America First Legal (AFL) and JW Howard Attorneys, Ltd. have initiated a federal lawsuit against IBM on behalf of John Loeffler, a 64-year-old former employee.
Loeffler asserts that the lawsuit aims to further “advance IBM’s internal DEI quota” and claims violations of Title VII of the Civil Rights Act of 1964.
The lawsuit contends that despite a history of positive performance reviews and leading a $30 million project successfully, Loeffler was placed on a Performance Improvement Plan (PIP) under conditions that suggested he was “unable to meet” expectations.
He opposed this plan, and Eric Castillo, his recently assigned manager, acknowledged that the PIP goals were unrealistic. Loeffler’s legal team argues that the PIP was intentionally created to push him out, specifically because he is an older white man. The lawsuit claims, “IBM discriminates against older workers in general and white men in particular in the name of ‘diversity.’
According to the lawsuit, after Loeffler was exited due to unmet targets, he was replaced by two younger, non-white employees.
Before his dismissal, Loeffler had almost a decade of successful service at IBM. His 2021 performance review praised him for his work ethic and support for colleagues. However, the lawsuit alleges IBM dismissed his accomplishments, notably rejecting the committee he was part of for the government contract project, while others who contributed less were recognized.
This legal action arises after years of DEI policies perceived to target white men. In 2021, IBM CEO Arvin Krishna called for racial and gender considerations in hiring processes, using incentives to meet DEI goals.
The lawsuit asserts that Castillo could only receive bonuses by replacing the older white employee with a younger “undervalued minority.” During a 2023 WebEx call, Castillo received commendation for his efforts to hire diverse candidates.
The AFL notes that IBM’s 2022 Annual Report highlights “diversity qualifiers” as elements affecting compensation. AFL lawyer Laura Stell expressed concern, stating, “It’s a profound tragedy that this iconic company has lost its way,” suggesting that IBM prioritizes ideology over legal equality.
This lawsuit marks the third against IBM regarding alleged discriminatory practices against white men.
