Oracle America has reached a settlement agreement worth $25 million to resolve a prolonged class action lawsuit alleging gender-based pay discrimination against approximately 4,000 female employees in California. The lawsuit claimed that Oracle underpaid women compared to men performing equivalent roles within the company.
Settlement Approval Motion Filed
In a recent development, plaintiffs’ attorneys filed a motion in San Mateo County Superior Court, urging Judge Raymond Swope to approve the settlement. They argued that the agreement was fair and reasonable. A hearing for preliminary approval is scheduled for April 8, during which the judge will consider approving, allowing for notification of potential class members and providing them with an opportunity to voice any objections before final approval.
Terms of the Settlement
Apart from the monetary compensation, the settlement also includes provisions for an independent expert to review Oracle’s employment practices. This review aims to ensure compliance with anti-discrimination laws. Notably, Oracle did not admit wrongdoing as part of the settlement. The company and its legal representatives have yet to respond to requests for comment regarding the agreement.
Allegations of Pay Disparity
The lawsuit, initiated in 2017, alleged that Oracle had been paying male employees in information technology, product development, and support roles up to $13,000 more annually than their female counterparts since at least 2013. Such discrepancies were purportedly in violation of the California Equal Pay Act.
Legal Proceedings and Certification
Judge Swope certified the class in May 2020, advancing the litigation process. Additionally, Oracle faced an administrative case in 2017 from the U.S. Department of Labor’s Office of Federal Contract Compliance Programs. The administrative claim accused Oracle of underpaying women and minorities by $400 million over four years. However, Oracle emerged successful in the administrative proceedings in 2020, with no appeal from the OFCCP.
Case Details
The lawsuit is formally known as Jewett v. Oracle America Inc, and it is being heard in the California Superior Court, San Mateo County, under case number 17-civ-02669.
For the plaintiffs, James Finberg of Altshuler Berzon has been representing their interests, while Gary Siniscalco of Orrick Herrington & Sutcliffe has been acting on behalf of Oracle.
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