A class action lawsuit was filed on Thursday against Apple Inc. The company has been accused of paying less to more than 12,000 female employees as compared to their male counterparts in California.
The filing was made in a San Francisco court. The plaintiffs are two women who have worked for the company for over a decade.
The lawsuit
According to the lawsuit, the iPhone maker underpays its female employees systemically. These include employees working in the AppleCare, marketing and engineering divisions.
The complaint stated that the starting pay of employees are based on their ‘pay expectations’ or their salaries at past jobs.
Therefore, it means that women get paid lower. The lawsuit further said that the performance evaluation system that Apple uses for giving bonuses and setting raises is biased.
Based in Cupertino, California, the firm said that it believes in pay equity and inclusion. Apple stated that they had managed to achieve and maintain gender pay equity since 2017.
It further added that to maintain pay equity, they hire a third-party, independent expert. Their job is to assess every’ employees current compensation and make adjustments, if necessary.
An attorney for the plaintiffs, Eve Cervantez, said that the iPhone maker’s practices create and widen the gender pay gaps that already exist.
She said that the situation was a no-win for female workers of the company.
The pay difference
Class action law companies Altshuler Berzon, Cohen Milstein Sellers & Toll and Outten & Golden are representing the plaintiffs.
The companies have managed to reach huge settlements in other similar cases of sex bias. Last year, there was a settlement with Goldman Sachs worth $215 million.
Likewise in 2022, Sterling Jewelers chose to make a settlement deal of $175 million. Since 2018, employers in California have been prohibited to ask employees about their salary history.
The goal is to eliminate any pay gaps based on race and sex. The lawsuit claims that Apple sets salaries based on employees’ expectations.
The problem is that most people ask for a number slightly higher than their last salary. This continues to perpetuate wage disparity.
The allegations
According to the lawsuit, the company rewards employees it considers to have more ‘talent’ and they are paid more. However, this designation is given to men for the most part.
The plaintiffs have accused the tech firm of violating the Equal Pay Act in California. As per the Act, companies cannot discriminate in pay based on sex.
In addition, state laws also prohibit unfair business practices and workplace sex bias. Justina Long is one of the plaintiffs in the lawsuit.
She claimed that she had complained about being sexually harassed by a coworker and requested a team transfer. However, Apple had refused to do so.
The lawsuit is seeking unspecified penalties and damages from the company.