Oracle accused of costing women and minorities $400 million

Department of Labor doubles down on lawsuit it filed against Oracle in 2017, which enjoys lucrative government contracts 

In a new federal filing, the US Department of Labor (DoL) has alleged that Oracle systematically discriminates against women and minorities, costing them an estimated $400 million.

The complaint renews the lawsuit that the DoL filed in 2017, that alleged Oracle paid “white male” workes more than their peers. The 2017 suit was put on hold to allow Oracle and DoL time to arbitrate the filing.

This time the DoL is upping the ante, accusing Oracle of unethical compensation and hiring practices.

The complaint states that there are gross disparities in the wages of its employees working at its HQ in Redwood Shores, California, even after controlling for variables like job title, full-time status and estimated prior work experience.

Oracle allegedly uses two methods to discriminate against women and minorities. The first entails relying on prior salary when setting initial pay, and the second involves “channelling” female, black and Asian employees into lower-paid positions.

“The OFCCP’s preliminary analyses of the limited information produced in discovery so far shows that Oracle suppressed starting salaries for its female and non-white employees,” the filing reads.

The DoL is also critical of Oracle’s apparent bias towards Asian applicants, alleging that it found ‘significant overrepresentation of Asians in its applicant pool’.

Oracle’s alleged bias stems from apparent targeted recruitment and a referral bonus policy encouraging its heavily Asian workforce to recruit other Asians.

Oracle is one of the world’s largest technology companies and receives over $100 million per year from contracts with the US Government.

“The Government enjoys the unrestricted power to produce its own supplies, to determine those with whom it will deal, and to fix the terms and conditions upon which it will make a needed purchase,” reads the filing.