Feds sue Oracle, JPMorgan for pay bias

But both companies say the claims are without merit

The Labor Department sued Oracle and JPMorgan Chase in separate discrimination suits, alleging Oracle paid white men more than their counterparts and that JPMorgan paid female technology employees less than male ones.

In its suit, Oracle was also charged with favoring Asian workers when recruiting and hiring for technical roles.

JPMorgan paid at least 93 women employed as lead applica- tion developers, project managers and technology directors in its Investment Bank, Technology & Market Strategies unit less than comparable men employed in the same positions, the Labor Department said.

The lawsuits are the latest from the Labor Department to take aim at the human resources practices in the high-tech labor market.

Analyses by USA TODAY and others have shown the tech sector employs fewer women and under-represented minorities than other industries and that Hispanics, Asians and blacks do not get equal pay for equal work in the field.

Oracle makes software and hardware used by the federal government, and the Labor Department warned the lawsuit could cost Oracle hundreds of millions in federal contracts.

“The complaint is politically motivated, based on false allegations, and wholly without merit,” Oracle spokesman Deborah Hellinger said in a statement.

“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.”

The lawsuit is the result of an Office of Federal Contract Compliance Programs (OFCCP) review of Oracle’s equal employment opportunity practices, the Labor Department said.

According to the lawsuit, Oracle America paid white male workers more, leading to pay discrimination against women, African-American and Asian employees. The Labor Department also accused Oracle of favoring Asians for product development and other technical roles, resulting in discrimination against non-Asian applicants.

Oracle refused to comply with the Labor Department’s investigation, which began in 2014, such as refusing to provide compensa- tion data for all employees, complete hiring data for certain business lines and employee complaints of discrimination, according to the federal agency.

JPMorgan, also a federal contractor, risks current and future government contracts. The complaint also seeks relief for the female workers, including lost pay and salary adjustments, and says JPMorgan failed to make sure the compensation systems for these employees was fair.

In a statement, the bank said: “JPM is committed to diversity in the workplace. We tried to work with the OFCCP regarding this matter and resolve any concerns. We are disappointed that the OFCCP chose to file a complaint, but look forward to presenting our evidence to a neutral decision maker.”

In separate lawsuits, the Labor Department alleges that Oracle paid white men more than their counterparts and that JPMorgan paid female workers less than men.