Apple Must Pay $25 Million for Discriminatory Hiring Practices

Apple Inc. has agreed to a $25 million settlement following a Department of Justice (DOJ) accusation of unfair bias against U.S. job seekers in its hiring procedures, particularly for the Permanent Labor Certification Program (PERM). The DOJ claimed that Apple didn’t advertise these positions on its website and required physical mail applications, creating hurdles for prospective applicants.

The PERM program enables American firms to hire workers who could potentially gain permanent U.S. residency after satisfying certain criteria, and it prohibits such discrimination against potential U.S. citizens and permit holders. Apple’s reputed failure to publicize job openings resulted in a decline in applications from eligible candidates. The settlement includes $18.25 million in back pay and $6.75 million in civil penalties.

According to CNBC, “PERM jobs are typically used to hire international graduates from U.S. universities.” Additionally, per the settlement agreement between Apple and the DOJ, “These less effective recruitment procedures deterred U.S. applicants from applying and nearly always resulted in zero or very few mailed applications that Apple considered for PERM-related job positions, which allowed Apple to fill the positions with temporary visa holders.”

Responding to the issue, Apple acknowledged the inadvertent deviation from DOJ norms and assured that it has implemented a comprehensive remediation plan for future recruitments.

“Apple proudly employs more than 90,000 people in the United States and continues to invest nationwide, creating millions of jobs. When we realized we had unintentionally not been following the DOJ standard, we agreed to a settlement addressing their concerns. We have implemented a robust remediation plan to comply with the requirements of various government agencies as we continue to hire American workers and grow in the U.S.”

Apple Spokesperson via CNBC

According to the settlement agreement, Apple disputes the allegations and maintains that it adhered to applicable Department of Labor regulations. The company also asserts that any shortfalls were accidental oversights rather than deliberate discriminatory acts.

The DOJ, however, alleges that Apple’s hiring procedures revealed a preference for existing Apple employees on temporary visas aspiring for permanent status. The department further criticized Apple for not advertising such positions on its external website and for implementing procedures that posed difficulties for applicants, such as demanding applications via postal mail. According to the DOJ, these obstacles could have resulted in some applicants not being properly evaluated as per federal legislation.