Verdicts & Settlements
Mastercard agrees to $26M settlement over pay discrimination claims
Mastercard has agreed to pay $26 million to settle a proposed class action lawsuit accusing the company of paying female, Black and Hispanic employees less than their male and white counterparts. (Image from Shutterstock)
Mastercard has agreed to pay $26 million to settle a proposed class action lawsuit accusing the company of paying female, Black and Hispanic employees less than their male and white counterparts.
According to a Jan. 14 court filing in New York, Mastercard said it also would conduct annual pay equity audits for three years and hire a psychologist to assess its career framework and processes, the New York Times reports. The company did not admit to wrongdoing.
Bloomberg Law, Reuters and the New York Times have coverage.
The plaintiffs in the case are former Mastercard employees who allege that the company’s compensation, promotion and assignment practices negatively affect female, Black and Hispanic employees, according to the settlement memorandum filed in the U.S. District Court for the Southern District of New York.
“Specifically, plaintiffs allege that Mastercard has treated female, Black and Hispanic employees less favorably than similarly situated white and male comparators with respect to pay, leveling and promotion, even though they held equivalent positions and, upon information and belief, performed the same or substantially similar work,” according to the settlement memorandum.
If approved, the settlement will resolve claims that Mastercard underpaid about 7,500 employees across the country dating as far back as 2016.
Mastercard agreed to the settlement before the proposed class action complaint was filed in federal court Tuesday, according to a Jan. 14 press release from Outten & Golden, the law firm that represents the plaintiffs.
“We are very pleased to have reached this nationwide settlement with Mastercard, which we believe represents a fair compromise,” said Cara E. Greene, a partner at the firm and lead counsel for the plaintiffs, in the release. “Importantly, the nonmonetary terms of the settlement will help ensure that Mastercard maintains an equitable workplace for the thousands of women and people of color it employs. Settlements like this help to level the playing field and move the entire industry closer to pay equity.”
Seth Eisen, a spokesperson for Mastercard, told the New York Times that the company “strongly” denies the allegations but agreed to settle the case to demonstrate its commitment to supporting and delivering for its employees.
“It is in the best interest of all involved to bring this matter to a close,” Eisen said.
