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Uber settles gender and race discrimination case for $10 million

People in New York who need a ride might appreciate Uber, but hundreds of female and minority employees of the company disliked their lower pay. A class-action lawsuit filed in October 2017 against the ridesharing company has resulted in a $10 million settlement that will be divided among hundreds of employees and former employees.

Three Latina software engineers were the lead plaintiffs. They accused Uber of using a system called stack ranking to deny them pay equal to their white or Asian male colleagues. The system gave lower quality scores to women and other minorities even if their work was the same or better than the preferred gender and races. These ratings influenced pay and promotions. Additionally, when people joined the company, Uber used their previous salaries to determine pay. This practice disadvantages women.

Since July 2017, Uber took steps to correct its compensation practices. Salaries were adjusted to create equivalent pay among all employees according to their position, tenure and location. The head of human resources resigned in July 2018 after an internal investigation about her treatment of discrimination complaints.

This case illustrates some of the tactics used by employers to devalue people because of their gender or race. A person who believes that prejudice has blocked opportunities for advancement, inspired suspiciously bad evaluations, caused harassment or resulted in lower pay could explore these issues with an attorney. After looking at the evidence, a lawyer might recommend that his or her client make an official complaint about employment discrimination. This effort might prompt a company to pay a settlement for violating employment laws. If a company denies wrongdoing, then an attorney could present the case in court.

Source: CNN, "Uber to pay 56 workers $1.9 million for harassment and discrimination claims", Sarah O'Brien, August 22, 2018

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