Lawsuit against Oracle threatens its federal contracts

Oracle is facing a lawsuit from the Labor Department for allegedly paying white male employees more than women and Asian or African American workers at its San Francisco headquarters.

Part of its lawsuit, the Labor Department is seeking a court order to cancel all federal contracts and subcontracts with Oracle and its subsidiaries.

The department’s release on the suit also alleges the company showed a pattern of preferential recruiting and hiring toward Asians for development and technical roles, therefore discriminating against non-Asians, based on the findings of a federal investigation started in 2014.

The lawsuit also seeks an order preventing Oracle and its subsidiaries from entering into new federal contracts until it has made changes to the satisfaction of the deputy assistant secretary for the Office of Federal Contract Compliance Programs. It calls for “complete relief for the affected class including lost wages, stock, interest, front wages, salary adjustments, promotions and all other lost benefits of employment and a reform of discriminatory policies.”

“The complaint is politically motivated, based on false allegations, and wholly without merit,” Oracle spokesperson Deborah Hellinger said in a statement provided to FedScoop. “Oracle values diversity and inclusion, and is a responsible equal opportunity and affirmative action employer.  Our hiring and pay decisions are non-discriminatory and made based on legitimate business factors including experience and merit.”

As a federal contractor, Oracle is not allowed to engage in “employment discrimination on the basis of race, color, sex, sexual orientation or gender identity or national origin and is required to take affirmative action to ensure that equal employment opportunity is provided to applicants and employees in all aspects of employment.”