Apple is currently facing a class action lawsuit on behalf of 12,000 women, both current and former employees in California, accused of engaging in discriminatory pay practices. This case could have significant ramifications not only for the company but also for salary practices across the tech industry.
A Tumultuous Process
The verdict from Ethan P. Schulman, a judge at the California Superior Court, is not favorable for Apple. He suggested there was a reasonable possibility
that Apple had illegally paid women less than men. This decision allows the lawsuit to proceed against Apple, despite the company’s attempts to have the case dismissed. The judge pointed to initial evidence of systematic wage disparities within the company’s engineering, AppleCare, and marketing divisions in California.
To get a full grasp of the situation, it’s important to look back at how it began. The issue of pay disparities at Apple came to light in 2021 with the #AppleToo movement, when an internal investigation conducted by employees uncovered a 6% pay gap between men and women in technical roles. The study also noted ethnic disparities with minority employees earning 5.06% less, and stock bonuses reportedly being awarded 11% later to these groups.
#AppleToo was a movement started by Apple employees in 2021 to expose internal problems such as harassment, discrimination, pay disparities, and other corporate culture issues. It aligns with other contemporary initiatives like #MeToo and #TimesUp, which aim to give a voice to employees facing injustices at work and demand greater transparency and accountability from companies.
What are the Allegations Against Apple?
In light of these findings, Apple banned any further internal analysis of this kind, even as they claimed to be committed to equal pay. However, the damage was done, and the lawsuit was already proceeding. This legal action highlights three main allegations against Cupertino.
1. Recruitment practices: Apple allegedly asked for candidates’ previous salary histories and salary expectations during recruitment, which may have perpetuated pre-existing inequalities. The company continued to ask for salary expectations, a factor that could disadvantage women who often are less confident in their pay demands.
2. Employee evaluations: It is alleged that Apple’s performance evaluations favor men over women for similar behaviors. For instance, assertive behaviors might be seen positively when exhibited by men, but perceived as aggressive when shown by women.
3. Internal assessment practices: The skill tests
(as they were conducted) could have led to pay disparities between men and women with comparable skills.
Equal Pay for Equal Work?
For its part, Cupertino has stated its firm and longstanding commitment to pay equity. The company asserts that globally, employees of all genders and ethnicities receive equivalent remuneration for similar work and comparable performance. It also indicates that it reviews employee compensation annually to ensure pay equity.
However, the question remains whether Apple’s past and current practices meet the requirements of California’s equal pay law, which requires companies to ensure that their recruitment and evaluation processes do not unintentionally create pay disparities.
This case highlights an ongoing issue in the tech industry, where pay inequalities continue to be a point of contention. The class action lawsuit against Apple could set an important legal precedent, prompting companies to reevaluate their salary policies and assessment methods. Meanwhile, the outcome of this lawsuit could redefine expectations for pay equity in the American tech sector.
