Mastercard Agrees To Pay $26M To Settle Unequal Pay Lawsuit

According to a Tuesday court filing, Mastercard has agreed to pay $26 million to settle a proposed class action lawsuit which alleged it underpaid female, Black, and Hispanic employees, as per The New York Times.

Four Masterard employees who previously worked at the company believed it had hired women and workers of color into lower-paying roles. Their suspicions grew as employees received fewer raises and promotions than white men doing similar work.

Additionally, the lawsuit charges Mastercard with violating federal laws banning pay discrimination and workplace sex and race bias.

What does the settlement claim?

The settlement claims that the company has underpaid nearly 7,500 employees since 2016. However, Mastercard did not confess to any misconduct, but it did agree to an annual pay equity audit for three years and hire a psychologist to examine bias in its workplace.

Seth Eisen, a spokesperson for the company, said it disagreed with the claims in the lawsuit; however, settling the case was in the best interest of all parties.

“It’s essential that we have a workplace where all employees feel valued, respected, and empowered to reach their greatest potential,” Eisen said.

How will the settlement help future employees?

Cara Greene of Outten & Golden, who represents the plaintiffs, said the non-monetary terms of the settlement would help guarantee that Mastercard nurtures an equitable workplace for the women and people of color who the company employs.

“Settlements like this help to level the playing field and move the entire industry closer to pay equity,” Greene added in a statement. The lawsuit found that in 2023, Mastercard’s median pay for Black and Hispanic employees was 94.3% of that for white employees, but women earned 96.4% of reimbursement paid to their male colleagues.

Image: WOCintech