Business Technology

Wednesday 23 October 2019

Pay discrimination case seeking class action status

Software company Oracle's headquarters in Redwood City, California
Software company Oracle's headquarters in Redwood City, California

Peter Blumberg and Joel Rosenblatt

Women suing major technology companies for gender discrimination would have much stronger leverage against their employers if they could press their claims on behalf of a large group of female colleagues.

But last year, the first two cases to reach that critical juncture - against Microsoft and Twitter - failed to advance as class actions.

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Now three women at software firm Oracle are trying to persuade a state court in the US to let them represent more than 4,000 peers in a case claiming that the database giant pays men better for doing the same jobs, in violation of California's Equal Pay Act.

They were to make their case on Friday, but the judge postponed it to September after a brief hearing.

The women's task will not be easy as the U.S. Supreme Court has set a high bar for employment discrimination cases to win class-action status. A ruling in 2011 blocked 1.5 million female workers at retail giant Walmart from pursuing their gender-bias claims as a group.

The barriers imposed by the high court decision played into the Twitter and Microsoft rulings, both of which are being appealed.

The case against Oracle was filed by former company engineer Sue Petersen and two other women, all of whom worked at PeopleSoft before it was acquired by Oracle in 2005.

The women allege that for years Oracle has paid women less than men for "substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions." To bolster their bid for class-action status, the plaintiffs emphasise that company-wide compensation is determined at Oracle's headquarters in Redwood Shores, California.

Oracle contends the lawsuit wrongly compares women and men tagged with the same job codes even though such coding doesn't mean the work requires similar skills, effort or responsibility, because Oracle's products and services vary so widely.

Relying on the codes does not "account for the tools or programming languages an employee must master, the hours her work requires, or the number and complexity of the sub-areas of a product for which she is responsible," the company stated in a court filing. Oracle representatives did not immediately respond to a request for comment.

Oracle is also fighting a case over gender-pay disparities brought by the U.S. Labor Department in the waning days of the Obama administration.


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