The Department of Labor criticized Palantir Technologies regarding the company’s hiring practices. As a consequence, one of the most valuable private tech companies in U.S. settled for an amount of $1,659,434. Those Asian employees who received a discriminating treatment from the executives are going to receive these funds as stock options and back wages. The department has also declared that Palantir will have to reconsider its conclusion regarding job offers for Asian people.
As a Federal Collaborator, the Law Requires Palantir to Reveal its Dversity Statistics
Palantir has rapidly adjusted its approach regarding its own employee hiring process the moment the Department of Labor criticized the company. The department accused the tech giant of repetitive hiring discrimination last year.
Palantir began its business activity as a tech startup in 2004. However, thanks to its products that address issues in the federal sector, the company gained momentum right from the start by converting federal agencies of the USIC into clients. The organization extended its services subsequently to private companies as well especially those that activate in healthcare and financial industries. As a consequence, Palantir was evaluated at a total of $20.33 billion back in 2015.
However, as the company works with federal entities, Palantir is under the obligation to divulge the government its diversity statistics among others. The Department of Labor was one of the units that took a close look at these documents. This is how the department came to the conclusion that the company is liable for a discriminating business conduct. The papers showed that even though Palantir received impressive job applications from Asian people, the executives selected only a small number of them.
Palantir Published Report that Showed up to 38% Asian Employees in Certain Departments
On the other hand, Palantir Technologies tried to defend its position by conducting an internal research. Its statistics showed that different tech departments had between 25% to 38% employees who were Asian people. However, this report wasn’t enough to budge the opinion of the federal regulators in the opposite direction. As a consequence, the company decided to settle and cover indemnities of more than one billion dollars.
Palantir made a public statement according to which they only settled to gain more time to focus on work. The company is content with its internal culture and doesn’t acknowledge any fault in this situation. However, most tech companies where competition is acerb are showing an unbalanced pool of employees. Usually, women, Latin-Americans, and African-Americans are the most underrepresented groups compared to their rate within the U.S. nation.
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