Missouri Sues IBM Alleging Racial, Gender Discrimination over Employment Quotas, Withheld Pay

Missouri attorney general Andrew Bailey is suing tech giant IBM for imposing racial and gender quotas on employees and job applicants, as well as tying executives’ compensation to their participation in discriminatory practices.

The lawsuit, filed Thursday, alleges IBM has violated the Missouri Human Rights Act because of its employment quotas and annual “diversity modifier” system. The internal standard requires the corporation to meet certain quotas per year based on race, color, national origin, sex, or ancestry. Bailey, a Republican, says this practice is illegal under state law.

“It is an...