Doll: Tech company Esri to pay $2.3M to settle pay discrimination claims.

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Dive Brief:

  • Esri, a digital mapping and analytics company based in Redlands, California, will pay $2.3 million in back fees and interest to settle allegations of wage discrimination filed by the U.S. Department of Labor. The agency announced on August 3.
  • According to Dole, preliminary findings of a federal compliance review found that Esri systematically discriminated against 143 female software development engineers and 33 female quality assurance engineers in 2017.
  • “Esri has resolved a matter with OFCCP that originated from a routine audit during the 2017 plan year,” the company said in a statement to HR Dive. “Esri has taken steps to correct internal job classifications and will move forward with the OFCCP recommendations. It is ESRI’s goal to always be fair and just and we are committed to improving our company.

Dive Insight:

Employers are prohibited from pay discrimination by a few laws: Equal pay lawAmends the Fair Labor Standards Act to prohibit employers from charging for sex-based discrimination; A The range of other lawsProhibits wage discrimination based on race, color, religion, sex, pregnancy status, gender identity, sexual orientation, national origin, age, disability, and genetic information; And Executive Order 11246Prohibits wage discrimination by federal contractors.

While wage discrimination is illegal, research shows it still exists. As a 2020 survey In the workplace, tech companies paid 63% more men for the same job. Employed partially approximates this result to the expected gap: “Any candidate’s salary expectations for a job are ultimately closely tied to the salary an employer will offer them,” wrote then-CEO Mehul Patel in the introduction to the report. “Our data shows that male candidates expect to earn more and our report shows that their offers are in line with expectations.

He said the employment gap is because women are more vulnerable. Imitation syndrome. The report gathered responses from women that they are less likely than men to talk about their success and are often unaware of a pay gap due to a lack of pay transparency.

However, women were less successful than men in taking action to address differences, the report found. Fifty-seven percent of men said they were able to negotiate a raise on their first paycheck, compared to 50% of women.

DOL put it Significant effort This year, it tackles wage and hour enforcement, unpaid overtime, misclassification and child labor, among others.

In May, the agency brought Same pay discrimination fee Although it disagreed with the findings, it settled the lawsuit against LinkedIn for $1.8 million.

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