Uber will shell out $10 million to settle a lawsuit alleging that it has discriminated against 420 women and minority workers by creating a hostile work environment. The lawsuit is the latest in a long string of legal actions against tech companies for not promoting diversity.
Silicon Valley companies have acknowledged that their workforce could create more room for women and racial minorities.
This is not the first time Uber is caught in a scandal. The company pledged to make the changes to address the latest lawsuit’s allegations. These changes include a Diversity & Inclusion report, diversity training for leaders and employees worldwide, and a new salary structure.
The taxi app firm’s diversity report was first released in March last year. According to the document, female workers and racial minority (except for Asians) were visibly underrepresented among tech workers and management.
The latest settlement will compensate all female software engineers and racial minorities that worked for the ride-hailing firm since July 2013.
Uber Pledges to Fix the Hostile Work Environment
Uber promised to revamp its recruiting and promotion strategies. It also promised to give mentorship and skill development to racial minorities and women in its workforce. Its compensation structure will be tweaked to address the issue.
The plaintiffs in the latest case are two Latina software engineers who accused Uber of discriminating against them by paying them less, keeping them glued to a low-level position, and not offering them any promotions.
The two women also accuse Uber of running a bias against females and people of color in performance evaluations. They claim that the company runs a “stack ranking” system that benefits white and Asian male workers.
The proposed settlement now needs to be approved by Judge Yvonne Gonzalez Rogers. The next hearing was scheduled for May 1 in Oakland federal court.
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