"Under the $30 million agreement, PayPal will launch a new Small Business Initiative that doesn't include a whiff of the diversity, equity and inclusion language so despised by the current administration. The program in the DOJ took umbrage with was the Economic Opportunity Fund, which PayPal launched in 2020. The endeavor planned to invest $530 million into Black- and minority-owned businesses, particularly those struggling during the COVID-19 pandemic."
"Rather than continue that work, PayPal will now waive processing fees for $1 billion in transactions for good ol' American small businesses that come with government-approved adjectives. That includes veteran-owned companies and those engaged in farming, manufacturing or technology. We've started to see other settlements reached as the Justice Department bilks money out of organizations that have run DEI programs."
""For far too long, Black people in America have faced deep-seated injustice and systemic economic inequality," PayPal CEO and President Dan Schulman said at the time. "PayPal is uniquely positioned to help in this area, and we are committed to doing our part to address the unacceptable racial divide by advancing a more just economy and society.""
"For instance, IBM agreed to pay more than $17 million last month to settle the agency's charges that "race, color, national origin, or sex" played a part in its hiring programs. The offending programs included having "race and sex demographic goals for business units" and using "a diversity modifier that tied bonus compensation to achieving demographic targets." Neither PayPal nor IBM admitted to any wrongdoing."
The Department of Justice reached a settlement with PayPal over a business support program. The $30 million agreement requires PayPal to launch a new Small Business Initiative that omits diversity, equity, and inclusion language. The DOJ objected to PayPal’s Economic Opportunity Fund launched in 2020, which planned to invest $530 million in Black- and minority-owned businesses, especially those affected during the COVID-19 pandemic. PayPal will instead waive processing fees for $1 billion in transactions for government-approved categories, including veteran-owned companies and businesses in farming, manufacturing, or technology. Other settlements have targeted organizations running DEI-related programs, including IBM’s $17 million settlement over hiring practices tied to demographic goals. Neither company admitted wrongdoing.
#paypal #department-of-justice-settlement #small-business-support #dei-and-hiring-practices #processing-fee-waivers
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