Judge Indicates ‘Reasonable Possibility’ of Apple Paying Women Less Than Men Illegally

0
13
Judge Indicates ‘Reasonable Possibility’ of Apple Paying Women Less Than Men Illegally

A judge has determined that there is a “reasonable possibility” that Apple engaged in unlawful pay practices by compensating women less than men. This ruling allows a class action lawsuit representing 12,000 current and former female employees to move forward.

While Apple acknowledges the existence of pay discrepancies, the company argues that these differences can be attributed to individual circumstances…

A Long-Standing Controversy for Apple

The controversy emerged in 2021 when an internal survey conducted by employees revealed a 6% pay gap between male and female employees in technical roles.

The survey covered approximately 1,400 technical roles. Results indicated that the median salary for men in mid-level technical positions was 6.25% higher than that of women, and median salaries for white employees in these roles were 5.06% higher than for non-white employees. Additionally, non-white employees received 11% fewer stock grants at the entry and mid-level technical positions compared to their white counterparts.

In response, Apple affirmed its commitment to pay equity but subsequently prohibited any future internal surveys of this nature.

Lawsuit Alleging Apple Illegally Paid Women Less

A class action lawsuit was initiated last year on behalf of 12,000 women who are or have been employed by Apple, claiming restitution for underpayment. The lawsuit alleges that Apple contravened the California Equal Pay Act.

Apple sought to have the lawsuit dismissed, conceding that pay disparities existed, but asserting that these were the result of individual circumstances and not a failure to comply with equal pay laws.

However, Arstechnica reports that the presiding judge has dismissed this defense and allowed the case to progress.

California Superior Court Judge Ethan P. Schulman issued an order that largely rejects Apple’s motions to dismiss the class allegations and halt several class claims […]

Judge Schulman concurred with the plaintiffs that there is a “reasonable possibility” that many women in Apple’s California engineering, AppleCare, and marketing divisions faced similar wage inequalities and discrimination allegations as stated in the suit.

Three Specific Accusations

While there is no suggestion that the company intentionally aimed to pay women less, that is not the legal requirement. The law mandates that companies ensure their hiring and appraisal procedures do not unintentionally produce such outcomes.

Apple faces three principal accusations:

Inquiry About Existing Salaries and Salary Expectations During Recruitment

By inquiring about prior salaries, offers could perpetuate pay inequalities present in previous employment. Although Apple stopped this practice following the issue’s emergence, it continues to request salary expectations. Studies show that women typically exhibit less confidence than men when negotiating for higher salaries.

Biased Employee Evaluations

There are allegations that Apple’s performance reviews favor men and disadvantage women for similar behaviors. For instance, men may be commended for “assertive” behavior, while women displaying the same traits may be labeled as “aggressive.”

Biased Talent Reviews

Apple is also criticized for conducting “talent reviews” (distinct from individual appraisals) that result in unequal pay for men and women of comparable talent.

Apple Will Defend the Case

Apple intends to contest the case. While the company hasn’t yet addressed this latest development, it has previously stated:

Apple is deeply committed to pay equity. Across the globe, employees of all genders receive equal pay for similar work with comparable experience and performance. In the U.S., this holds true for employees of all races and ethnicities. We no longer request salary history during the recruiting process [DMN note: This was a previous practice]. Our recruitment team bases offers on the salaries of Apple employees in similar roles, and we annually review compensation to maintain pay equity.

Photo by Mina Rad on Unsplash

FTC: We utilize income-earning auto affiliate links. More.

2024 08 9to5 iphone16 grip banner outlined