Apple Inc. (AAPL.O) was hit with a proposed class action lawsuit on Thursday, accusing the tech giant of paying over 12,000 female employees in California less than their male counterparts with comparable jobs. The lawsuit, filed in state court in San Francisco by two women who have worked at Apple for over a decade, claims that the company systematically underpays female workers in its engineering, marketing, and AppleCare divisions.
The complaint highlights that Apple bases workers’ starting pay on their salaries at previous jobs or on their “pay expectations”, a practice that results in lower pay rates for women. Additionally, the lawsuit alleges that Apple’s performance evaluation system, which determines raises and bonuses, is biased against women.
In response, Cupertino-based Apple stated its commitment to inclusion and pay equity. “Since 2017, Apple has achieved and maintained gender pay equity and every year we partner with an independent third-party expert to examine each team member’s total compensation and make adjustments, where necessary, to ensure that we maintain pay equity,” the company said.
Eve Cervantez, a lawyer for the plaintiffs, argued that Apple’s practices perpetuate and widen existing gender pay gaps. “This is a no-win situation for female employees at Apple,” Cervantez remarked.
The plaintiffs are represented by class action law firms Outten & Golden, Cohen Milstein Sellers & Toll, and Altshuler Berzon. These firms have a history of brokering substantial settlements in sex bias cases, including a $215 million deal with Goldman Sachs last year and a $175 million settlement with Sterling Jewelers in 2022. Both companies denied any wrongdoing.
Since 2018, California has prohibited employers from asking job applicants about their salary history to eliminate pay gaps based on sex and race. However, Thursday’s lawsuit claims that Apple relies on applicants’ pay expectations to set their salaries, which continues to perpetuate wage disparities. The lawsuit further alleges that Apple rewards employees deemed to have “talent” by paying them more, but disproportionately grants that designation to men.
The lawsuit accuses Apple of violating California’s Equal Pay Act, which bars sex discrimination in pay, as well as state laws prohibiting workplace sex bias and unfair business practices. One of the plaintiffs, Justina Jong, also claims that Apple refused to transfer her to a different team after she complained about sexual harassment by a coworker. The lawsuit seeks unspecified damages and penalties.
This legal action underscores the ongoing challenges that women face in achieving pay equity, even in companies that publicly commit to such principles. As the case progresses, it may shed light on the effectiveness of existing policies and practices designed to ensure fair compensation for all employees.
