01-29-2019
The U.S. Department of Labor (DOL) has filed an updated complaint reflecting allegations that Oracle America, Inc. has engaged in discriminatory practices that cost its workers $400 million. In 2017, the DOL’s lawsuit was first filed claiming that Oracle engaged in “systemic compensation discrimination against women and Asians and African Americans.” In its investigation, the DOL found “gross disparities in pay” even after adjusting for title, status, and prior work experience among other factors.Oracle purportedly used two methods to discriminate against women and individuals of color. First, it set initial pay based on prior salary and then it “channeled” those individuals into career tracks that would keep them earning lower pay. Suppressing their salaries and assigning them to lower-level positions purportedly resulted in $400 million in lost compensation. Moreover, the DOL claims that 90% of the 500 employees hired by Oracle right out of college between 2013 and 2016 were Asian. This Asian preference allegedly extended to the hiring of Asian visa-holders as well. The DOL also believes that Oracle “destroyed records relating to its hiring process” while the case was ongoing. Oracle receives more than $100 million in public money from federal contracts.
The recent filing of an updated complaint was a result of failed attempts to mediate the dispute. Oracle’s General Counsel dismissed the lawsuit as “meritless” and called the charges “spurious” made as a result of a “seriously flawed process.”