“Federal contractors are required to comply with all applicable anti-discrimination laws,” said Thomas Dowd, acting director of the U.S Labor Department. “We filed this lawsuit to enforce those requirements.”
According to Arab News, the lawsuit stems from the result of an investigation that began back in 2014 by the Federal Contract Compliance Program. This lawsuit could result in the loss of lucrative U.S. government contracts that Oracle had in place.
Oracle, a computer software company from California, is one of Silicon Valley’s largest organizations and has roughly 45,000 employees. Oracle plans on playing an important role in the future of cloud computing, unless this lawsuit causes too much damage. Globally, the market for cloud IT equipment is expected to reach $79.1 billion by the end of 2017.
PC World reports that Oracle rejected the Labor Department’s accusations.
“The complaint is politically motivated, based on false allegations, and wholly without merit,” said Oracle’s official spokesperson. “Our hiring and pay decisions are non-discriminatory and made based on legitimate business factors including experience and merit.”
The Labor Department alleges that the computer company has refused to cooperate with the review, including refusing to provide requests pertaining to employee records.
“Oracle refused to provide prior-year compensation data for all employees, complete hiring data for certain business lines, and employee companies of discrimination,” said Labor Department officials.
Fortune states that the original complaint shows that Oracle, during the time of the complaint, was far more likely to hire Asian applicants, Indian workers in particular, and looking past otherwise qualified black, white, and Hispanic prospective employees.
The government “attempted for almost a year to resolve Oracle’s alleged discrimination violations before filing the suit,” added Labor Department officials.
Despite the reports that Oracle favored Asian workers for product development and more technologically advanced jobs, there were additional reports that the company still paid its white male employees more than any other workers at the firm. The complaint states that even in cases where a female or non-white worker had more experience than their white male counterparts, the company would pay the white males more for the exact same position.
The nine-page complaint could result in the company losing millions of dollars if the Labor Department can prove its case.