Labor Department sues Oracle for racial discrimination

Regulators say white male workers paid more than non-white counterparts.

The US Department of Labor has filed a lawsuit against Oracle America, saying the software giant systemically pays Caucasian male workers more than their counterparts with the same job title. The lawsuit also says Oracle favors Asians in hiring for certain roles, which results in discrimination against non-Asian employees.

The lawsuit is the result of an investigation that began in 2014. In a statement issued on the lawsuit, the Dept. of Labor's Office of Federal Contract Compliance Programs (OFCCP) says that Oracle wouldn't comply with "routine requests for employment data and records" during the investigation. OFCCP tried for "almost a year" to resolve the matter before filing suit.

Federal contracting rules prohibit Oracle from employment discrimination. If Oracle doesn't stop the discrimination alleged in the lawsuit, OFCCP has requested that all of company's government contracts be canceled and that it be prevented from entering into future federal contracts.
The government's sparse nine-page complaint (PDF) outlines only the basics of the allegations. It claims that Oracle discriminated against female employees in its information technology, product development, and support jobs at its Redwood Shores headquarters, "paying them less than comparable males in comparable roles." Similarly, the complaint states that African-Americans and Asians in product development were paid less than comparable white employees.

In another job role, OFCCP accuses Oracle of discriminating against white, African-American, and Hispanic workers. The company is alleged to have favored Asians, and particularly Indians, for positions in the "Professional Technical 1" job group and product development line.

The Department of Labor is asking for Oracle to provide "complete relief to the affected classes," including lost compensation.

"The complaint is politically motivated, based on false allegations, and wholly without merit," an Oracle spokesperson said in a statement e-mailed to Ars. "Oracle values diversity and inclusion and is a responsible equal opportunity and affirmative action employer. Our hiring and pay decisions are non-discriminatory and made based on legitimate business factors including experience and merit."