Apple Faces Class Action Lawsuit Over Alleged Gender Pay Gap

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A proposed class action lawsuit has been filed against Apple Inc. in San Francisco, accusing the company of gender-based pay discrimination. The suit, initiated by two women, alleges that Apple underpays over 12,000 female employees in California compared to their male counterparts in similar roles. The plaintiffs claim that Apple’s reliance on previous salaries or pay expectations to set starting pay and its biased performance evaluation system contribute to this disparity.

Overview of the Lawsuit

Apple Inc. (AAPL.O) is facing a significant legal challenge as a proposed class action lawsuit has been filed against the tech giant, accusing it of systematic gender-based pay discrimination. The lawsuit, brought by two female employees, claims that Apple has been paying over 12,000 women in California less than their male counterparts for similar positions. This case highlights ongoing concerns about pay equity in the technology industry.

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Claims of Systematic Underpayment

The lawsuit, filed in the state court in San Francisco, alleges that Apple has been systematically underpaying women in its engineering, marketing, and AppleCare divisions. According to the plaintiffs’ lawyers, this pay disparity is not an isolated issue but rather a widespread problem affecting thousands of female employees within the company.

Basis for Disparities

A key factor contributing to this alleged pay gap is Apple’s method of determining starting salaries. The lawsuit claims that Apple bases starting pay on employees’ previous salaries or their “pay expectations,” which tends to result in lower wages for women. This practice is argued to perpetuate existing wage inequalities from previous employment, further disadvantaging female workers.

Performance Evaluation Bias

In addition to starting salary practices, the lawsuit also points to biases in Apple’s performance evaluation system. According to the plaintiffs, the system used to determine raises and bonuses is skewed against women, exacerbating the pay disparity over time. This bias in performance evaluations can have long-term impacts on career advancement and compensation for female employees.

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Implications for Apple

This lawsuit brings attention to the broader issue of gender pay equity in the tech industry. If successful, it could lead to significant changes in how Apple and other technology companies address pay disparities and evaluate employee performance. The case underscores the need for transparent and equitable pay practices to ensure fair treatment of all employees, regardless of gender.

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