Oracle accused of underpaying its female staff by $13,000 per year

Lawsuit claims that female employees receive less in bonuses and stock as well as base salaries

Oracle has been systematically underpaying its female workers by an average of $13,000 per year, a lawsuit has claimed.

A new motion in a class-action suit claims that women who worked for the IT giant made 3.8% less than their male counterparts in terms of their base pay, 13% less in bonuses and 33% less in stock options.

According to the motion, discrepancies with an "extraordinarily high degree of statistical significance" were found in Oracle's payroll data, and were not based on "valid job-related reasons" like performance or experience.

An analysis conducted on behalf of the plaintiffs indicated that women were paid less than men even in cases where they had been working for the same length of time and achieving the same level of performance.

Advertisement
Advertisement - Article continues below

The class-action suit hopes to represent more than 4,200 women who have been working for Oracle since 2013 in roles including support, IT and product development. Six plaintiffs are specifically named in the suit, all of whom have now left Oracle.

This is not the first time that Oracle has been accused of gender discrimination; the company was also sued by the US Department of Labor in 2017, over claims that it disproportionately overpaid white men while underpaying female, black and Asian staff with the same job titles.

Oracle has similar gender pay issues in the UK, according to the company's annual gender pay gap report. The report, which all companies operating in the UK are required by law to publish, details the average difference in salaries between men and women within the company. Oracle's latest report showed that in the UK, male employees were paid an average of 20% more than women, with a 38% average gap in bonuses.

The company claims that this is due to the fact that around a quarter of its workforce is female, which leads to more men in high-paying roles and skews the overall average. The company also said that it is taking steps to address its gender imbalances such as implementing unconscious bias training for all managers and emphasising the importance of diversity to hiring managers.

Despite these assurances, however, the latest motion in the case alleges that Oracle was aware of issues surrounding wage discrimination but has done nothing to correct them. "Women are getting paid less across the board," said Jim Finberg, the attorney representing the claimants. "These are some of the strongest statistics I've ever seen - amazingly powerful numbers."

Finberg is something of an expert, having brought a very similar suit against Google in 2017 which alleged that the Silicon Valley firm was also underpaying female staff, as well as denying them promotions. The suit is still ongoing.

When approached, an Oracle representative declined to comment on the lawsuit.

Featured Resources

The IT Pro guide to Windows 10 migration

Everything you need to know for a successful transition

Download now

Managing security risk and compliance in a challenging landscape

How key technology partners grow with your organisation

Download now

Software-defined storage for dummies

Control storage costs, eliminate storage bottlenecks and solve storage management challenges

Download now

6 best practices for escaping ransomware

A complete guide to tackling ransomware attacks

Download now
Advertisement

Recommended

Visit/business-strategy/32994/cultural-resistance-not-tech-is-holding-innovation-back-oracle-research
Business strategy

Oracle: Cultural resistance, not tech, is holding innovation

13 Feb 2019
Visit/business-strategy/32820/oracle-underpaid-women-and-minorities-by-more-than-400-million-says-us
Business strategy

Oracle underpaid women and minorities by over $400m, US says

23 Jan 2019

Most Popular

Visit/cloud/microsoft-azure/354230/microsoft-not-amazon-is-going-to-win-the-cloud-wars
Microsoft Azure

Microsoft, not Amazon, is going to win the cloud wars

30 Nov 2019
Visit/business/business-strategy/354252/huawei-takes-the-us-trade-sanctions-into-its-own-hands
Business strategy

Huawei takes the US trade sanctions into its own hands

3 Dec 2019
Visit/hardware/354237/five-signs-that-its-time-to-retire-it-kit
Sponsored

Five signs that it’s time to retire IT kit

29 Nov 2019
Visit/mobile/mobile-phones/354273/pablo-escobars-brother-launches-budget-foldable-phone
Mobile Phones

Pablo Escobar's brother launches budget foldable phone

4 Dec 2019