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Department of Labor Sues Oracle For Its Employment Practice

By Menahem Zen | Jan 20, 2017 10:09 AM EST
The Oracle logo is seen on an Oracle Team USA racing catamaran that is displayed in the lagoon outside of the Oracle headquarters on December 16, 2014 in Redwood City, California.
(Photo : Getty Images /Justin Sullivan) The Oracle logo is seen on an Oracle Team USA racing catamaran that is displayed in the lagoon outside of the Oracle headquarters on December 16, 2014 in Redwood City, California. Oracle will report second quarter earnings on Wednesday.

Unites States Department of Labor sues Oracle for its discriminatory employment practices which will cost the company millions of dollars in federal contracts.

In its official press release, the Unites States Department of Labor filed a lawsuit against Oracle America, Inc for alleged systemic practice to pay Caucasian male workers more than their counterparts in the same job title. The practice makes the company to discrimate practice aginst female employees, as well as Asian and African American employees .

The lawsuit also challenges another systemic practice in Oracle hiring and recruitment process. The practice of favoring Asian workers for technical roles and prodcut development has resulted a discrimination against non-Asian applicants in hiring process.

The Department of Labor files a lawsuit due to Oracle’s position as federal contractor that provide software, services and hardware to the U.S. government. As a federal contractor Oracle is required to maintain fair and equitable hiring practice.

Oracle has denied the claim and saying the lawsuit has a high political motive. In respond to the lawsuit, Oracle has issued the statement as quoted by CNN. Oracle spokeswoman Deborah Hellingersaid in the statement that the lawsuit is a false allegation.

"The complaint is politically motivated, based on false allegations, and wholly without merit," the statement said. "Oracle values diversity and inclusion, and is a responsible equal opportunity and affirmative action employer."

Aside from Oracle, Department of Labor has also sued other high tech federal contractors for the past few months. The agency has sued Google and Palantir for alleged discriminatory employment practice.

Google was sued earlier in January which will force the company to disclose its compensation data. While data software company Palantir was sued in September for alleged discrimination against Asian applicants.

Watch the report regarding Oracle respond on the lawsuit against the company which is deemed to be highly political below:

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