Software Maker Oracle Accused of Underpaying Women and Minorities by $400+ Million
In a case being pursued by the U.S. Department of Labor, as part of its examination of government contractor pay practices, Oracle is accused of underpaying roughly 16,000 employees by nearly 25 percent between 2013-2016. Affecting primarily Asian and female employees, the pay disparity partly stems from Oracle setting salaries based on prior salaries.
Asking for previous salary history on applications is a practice that is now prohibited in a number of jurisdictions as it can have the effect of perpetuating pay inequities. Employers should make salary decisions based on competitive internal and external market data—not on what an employee earned at a former employer.