Two giants, Pfizer and Google, recently faced hefty fines over alleged gender discrimination within their organizations. Pfizer settled with the federal government for $2 million over claims of underpaying a group of female employees. Meanwhile, a New York jury ordered Google to pay over $1 million to an employee accusing the tech giant of pay discrimination.
These fines, though small in comparison to the companies’ overall finances, spotlight a bigger issue. They’re a warning sign, indicating the potential for costly legal battles when companies fail to tackle gender bias effectively.
At Google, Ulku Rowe, an engineering director in the cloud unit, filed a lawsuit in 2019 alleging pay discrimination and retaliation. Her complaint stated that she was hired at a lower level and paid less than her male peers in similar roles. The jury ruled that while Google retaliated against Rowe and discriminated based on gender, it didn’t find evidence of unequal pay, per New York’s pay equity law. However, Google was still directed to pay Rowe over $1 million in damages. Google disagreed with the jury’s findings, denying any discrimination or retaliation, and emphasizing its strict anti-retaliation policies.
On another front, Pfizer was found by the Department of Labor to have underpaid 86 female employees in professional roles in New York City from 2015 to 2016. The company agreed to pay $2 million to affected employees, conduct a salary analysis, and rectify significant gender-based pay gaps. However, Pfizer’s media team contested the DOL’s claim of system revisions, stating it differed from the mutually agreed-upon terms.
The Bigger Picture: Scrutiny on HR Practices
These cases highlight a growing trend where employers face increased scrutiny over HR practices. The OFCCP’s actions against Pfizer signify a push for government contractors to rectify pay inequities. Google’s case marks a significant post-arbitration lawsuit, stemming from the company’s policy change following employee protests. It’s noteworthy that a recent federal law ended forced arbitration for sexual harassment claims.
Gender bias lawsuits dominated top settlements last year, with nine out of ten high-value cases linked to such discrimination. In essence, these cases serve as cautionary tales, urging companies to reassess and rectify any gender-based disparities in their workplaces before legal trouble comes knocking.
