The settled agreement requires Apple to pay USD 6.7 million in civil penalties and to establish a back pay fund of USD 18.75 million for “eligible victims of discrimination.”
Apple Inc. agreed to pay USD 25 million to settle a Department of Justice case alleging that the iPhone maker illegally discriminated against US citizens in hiring. The department said that Apple showed bias against US workers as part of recruitment for PERM, the permanent labor certification program. The Cupertino, California-based technology giant didn’t advertise such positions on its website and made it more difficult for workers to apply for.
The settled agreement requires Apple to pay USD 6.7 million in civil penalties and to establish a back pay fund of USD 18.75 million for “eligible victims of discrimination.” The settlement amount is the biggest ever for the Department of Justice among cases involving claims of discrimination based on citizenship.
NOTE: PERM is a government program allowing employers to sponsor workers for lawful permanent resident status if they meet certain requirements.
In a statement, Apple said that it had “unintentionally not been following the DOJ standard.” “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 US,” the company said.
Apple said the PERM process accounts for about 5% of its U.S. workforce, and the company didn’t intentionally violate any laws.
Apple will also be required to conduct more expansive recruitment for PERM positions. Some of the changes mandated by the agreement were already implemented after the Justice Department began its investigation.