Apple Inc. (AAPL.O) encountered a significant legal challenge on Thursday as it was hit with a proposed class action lawsuit accusing the tech giant of systematically underpaying more than 12,000 female employees in California compared to their male counterparts in similar roles.
Filed in state court in San Francisco by two long-term female employees, the lawsuit targets Apple’s practices within its engineering, marketing, and AppleCare divisions. It alleges that Apple bases starting pay for employees on their previous salaries or salary expectations, a practice that reportedly results in lower initial pay rates for women. Moreover, the complaint asserts that Apple’s performance evaluation system, used to determine raises and bonuses, is biased against women.
In response to the allegations, Apple, headquartered in Cupertino, California, asserted its commitment to inclusion and pay equity. The company stated that since 2017, it has achieved and maintained gender pay equity, annually partnering with an independent third-party expert to review each team member’s total compensation and make adjustments where necessary.
Lawyer Eve Cervantez, representing the plaintiffs, criticized Apple’s practices, arguing that they perpetuate and exacerbate existing gender pay disparities. Cervantez emphasized the detrimental impact on female employees at Apple, characterizing the situation as a “no-win” for them.
The lawsuit, spearheaded by law firms Outten & Golden, Cohen Milstein Sellers & Toll, and Altshuler Berzon, seeks to address alleged violations of California’s Equal Pay Act, which prohibits gender-based pay discrimination, along with state laws combating workplace gender bias and unfair business practices.
Additionally, one of the plaintiffs, Justina Jong, claimed that Apple denied her a transfer to a different team after she reported experiencing sexual harassment from a coworker. The lawsuit is pursuing unspecified damages and penalties against Apple.
California, which since 2018 has prohibited employers from inquiring about job applicants’ salary history to mitigate pay disparities based on sex and race, remains central to the legal backdrop of the case. The plaintiffs argue that Apple’s reliance on applicants’ salary expectations rather than previous salary history perpetuates wage disparities, despite regulatory efforts aimed at equality.
The lawsuit also contends that Apple disproportionately designates male employees as having “talent,” resulting in unequal pay outcomes. This legal action against Apple underscores ongoing challenges in achieving gender pay equity within the tech industry, despite initiatives and regulatory measures aimed at fostering equality.
