Apple (AAPL.O) faced a proposed class action lawsuit on Thursday, accusing the company of paying over 12,000 female employees in California less than their male counterparts in comparable roles.
Filed in San Francisco state court by two longtime female employees, the lawsuit claims Apple systematically underpays women in its engineering, marketing, and AppleCare divisions. The complaint alleges that Apple’s practice of basing starting pay on previous salaries or “pay expectations” results in lower wages for women. It also asserts that Apple’s performance evaluation system, which influences raises and bonuses, is biased against female employees.
In response, Cupertino, California-based Apple stated its commitment to inclusion and pay equity. “Since 2017, Apple has achieved and maintained gender pay equity, partnering annually with an independent third-party expert to review total compensation and make necessary adjustments to ensure pay equity,” the company said.
Eve Cervantez, a lawyer for the plaintiffs, criticized Apple’s practices for perpetuating and expanding gender pay gaps. “This is a no-win situation for female employees at Apple,” Cervantez stated.
The plaintiffs are represented by class action law firms Outten & Golden, Cohen Milstein Sellers & Toll, and Altshuler Berzon. These firms have secured substantial settlements in other sex bias cases, including a $215 million settlement with Goldman Sachs last year and a $175 million settlement with Sterling Jewelers in 2022. Both companies denied any wrongdoing.
Since 2018, California has prohibited employers from asking job applicants about their salary history to help eliminate pay gaps based on sex and race.
