California-based technology leader Apple Inc. AAPL has conceded to a monumental $25 million settlement with the U.S. Department of Justice following allegations of discriminatory hiring practices.
What Happened: The settlement is in response to claims that Apple unlawfully prioritized immigrant workers over U.S. citizens and green card holders for specific roles, a direct violation of federal anti-discrimination laws based on citizenship status, reported Reuters.
The settlement, the largest of its kind, demands the iPhone-maker to pay $6.75 million in civil penalties and $18.25 million to those affected, though the number of impacted employees remains undisclosed.
The Tim Cook-led company has admitted to the oversight, claiming it had “unintentionally not been following the DOJ standard.” To rectify the situation, Apple has initiated a comprehensive remediation plan to meet government regulations as it continues to expand within the U.S.
According to the Justice Department, the tech giant neglected to advertise job openings eligible for the PERM program, which permits employers to sponsor immigrant workers for green cards.
Moreover, Cupertino allegedly deviated from its standard electronic application procedure by requiring physical submissions.
While the DOJ did not specify how the tech giant might have benefited or which jobs were affected by these recruitment procedures, the report noted that foreign labor can be relatively cheaper than hiring U.S. citizens.
Apple has committed to aligning its PERM job recruitment with its standard processes, broadening its recruitment efforts, and offering employee training on anti-discrimination laws as part of the settlement.
It is pertinent to note that in 2021, Meta Platforms Inc., then known as Facebook Inc., also agreed to similar settlements separately with the U.S. Department of Justice and the U.S. Department of Labor. The Mark Zuckerberg-led company agreed to pay up to $14.25 million to settle civil claims.
Why It Matters: This incident adds to the ongoing discussion surrounding the hiring practices of major corporations, which may or may not always be flavored, as in the aforementioned case.
For instance, the DOJ sued Elon Musk’s SpaceX in August earlier this year, alleging discrimination against refugees in its recruitment process between September 2018 and May 2022. The tech mogul criticized the DOJ’s double standards in response to the lawsuit.
Meanwhile, last month, Amazon’s migrant workers in Saudi Arabia reported exploitation, including low wages and harsh working conditions, drawing attention to the potential misuse of immigrant labor by global companies.
Photo via Shutterstock.
This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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