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Oracle slammed for underpaying women and minorities

(Image credit: Image Credit: Ken Wolter / Shutterstock)

Oracle has been accused of paying women and minorities less than other employees for the same work.

According to the US Labor Department the company also prioritised hiring workers that it could later discriminate against and pay less than what’s deserving for the work. All of this amounts to some $400 million that the company ‘saved’ on these workers.

According to a Bloomberg report, this is what Labor Department attorney Laura Bremer told an administrative law judge: “Oracle has continued to systemically discriminate against employees and applicants based on gender and race.”

The Department of Labor believes there seem to be two reasons behind this. One stems from the fact that Oracle uses previous employment to determine its employees’ starting salaries. The other one stems from the fact that Oracle uses a recent college graduate hiring program to bring in Asian visa holders. These are more susceptible to being paid less, the DOL argues.

Oracle “impermissibly denies equal employment opportunity to non-Asian applicants for employment, strongly preferring a workforce that it can later underpay,” Bremer said. “Once employed, women, blacks, and Asians are systematically underpaid relative to their peers.”

The new complaint builds, in part, upon a lawsuit from 2017, which said Oracle ‘systematically paid white male workers more than their peers who were women or people of colour’. Oracle denied the allegations.

Image Credit: Ken Wolter / Shutterstock