A judge has determined there is a “reasonable possibility” that Apple may have unlawfully compensated women less than men, allowing a class action lawsuit filed on behalf of 12,000 current and former female employees to move forward.
Apple acknowledges the existence of pay disparities but contends that these can be explained by individual circumstances…
An Ongoing Controversy for Apple
The concern was first highlighted in 2021, when an internal survey conducted by staff discovered a 6% pay gap between male and female employees in technical positions.
Approximately 1,400 technical roles were included in the survey findings. The data indicated that the median salary for men in mid-level technical roles was 6.25% greater than that of women, and the median salary for white employees surpassed that of non-white employees by 5.06%. Additionally, non-white workers in entry-level and mid-level technical jobs received 11% fewer stock grants compared to their white counterparts.
Apple responded by expressing its commitment to pay equity, but subsequently prohibited any further internal surveys of this nature.
Lawsuit Claiming Apple Unlawfully Paid Women Less
A class action suit was initiated last year, representing 12,000 women who are or were employed by Apple, seeking restitution for underpayment. The lawsuit alleges violations of the California Equal Pay Act.
Apple sought to have the case dismissed, conceding that pay disparities exist but asserting that these reflect individual situations rather than failures to comply with equal pay laws.
However, Arstechnica reports that the presiding judge has dismissed this argument, stating there is enough evidence to allow the case to continue.
California Superior Court Judge Ethan P. Schulman issued an order that largely denies Apple’s requests to dismiss class allegations and temporarily halt several class claims […]
Schulman supported the plaintiffs’ claim, indicating there is a “reasonable possibility” that many women within Apple’s California engineering, AppleCare, and marketing departments faced similar pay inequities and discrimination as outlined in the lawsuit.
Three Key Accusations
While there is no assertion that the company intentionally aimed to pay women less, this is not the legal benchmark. The law mandates that companies avoid recruitment or evaluation practices that inadvertently result in such disparities.
Specifically, Apple faces three key accusations:
Inquiring About Existing Salaries and Compensation Expectations During Recruitment
Using current salaries as a basis for offers can perpetuate existing pay gaps from previous employers. Although Apple ceased this practice after it was highlighted, it still requests salary expectations, and studies indicate that women tend to be less assertive than men in negotiating higher pay.
Biased Employee Evaluations
Allegations suggest that Apple’s performance reviews favor men while penalizing women for identical behaviors. For instance, men may be lauded for “assertive” behavior, while similar actions by women may be characterized as “aggressive.”
Biased Talent Evaluations
Apple is also accused of conducting “talent reviews,” which differ from individual performance assessments, leading to unequal pay for equally skilled men and women.
Apple Will Contest the Case
Apple plans to defend itself vigorously. Although the company has not provided a comment on this latest development, it previously stated:
Apple remains firmly committed to pay equity. Worldwide, employees of all genders are compensated equally when performing similar work with comparable experience and performance. This holds true in the United States for employees of all races and ethnicities. We no longer inquire about salary history during recruitment [DMN notes that this was previously the practice]. Recruiters base salary offers on current Apple employees in similar roles, and we review employee compensation annually to maintain pay equity.
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