Oracle has been sued by the US Department of Labor for allegedly paying white male employees more than female, African American or Asian staff in the same job role.
The suit also alleges that Oracle has a "systemic practice" of favouring Asian workers for product development and other technical roles, leading to discrimination against non-Asian applicants.
The lawsuit has come as something of a last resort by the DoL, via its Office of Federal Contract Compliance Programs, after it tried to audit Oracle on its hiring practices for almost a year.
It said that during the investigation, that began in 2014, Oracle refused to hand over many important documents, such as pay data for all employees, hiring data for certain business lines, and employee complaints of discrimination.
"OFCCP attempted for almost a year to resolve Oracle's alleged discrimination violations before filing the suit," the DoL said.
As part of the lawsuit the DoL said that if Oracle did not comply with its request to end the practices detailed in the suit, it should be banned from participating in federal government technology projects.
"If Oracle fails to provide relief as ordered in the lawsuit, OFCCP requests that all its government contracts be canceled and that it be debarred from entering into future federal contracts."
"Federal contractors are required to comply with all applicable anti-discrimination laws," added OFCCP Acting Director Thomas Dowd. "We filed this lawsuit to enforce those requirements."
Oracle spokeswoman Deborah Hellinger hit back against the lawsuit, claiming it was "politically motivated, based on false allegations, and wholly without merit".
"Oracle values diversity and inclusion, and is a responsible equal opportunity and affirmative action employer. Our hiring and pay decisions are non-discriminatory and made based on legitimate business factors including experience and merit."
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