01-23-2025
Four former Mastercard employees accused the global financial network of routinely hiring women and people of color and placing them in lower-paying jobs. The disparity between these workers and white men grew as the former received smaller raises and fewer promotions than the latter for the same work. The settlement and lawsuit were filed at the same time in a New York federal district court, a practice that allows for class action lawsuits to receive formal certification and court oversight of settlements. The proposed class would include about 7,500 employees. Most of the employees were in mid-level positions.
The former employees alleged pay disparities go back to 2016. In 2023, Mastercard’s median pay for Black and Hispanic employees was 94.3% of what it was for white employees, while women earned 96.4% of a male colleague’s pay. They accused Mastercard of violating federal laws banning pay discrimination, workplace sex and bias, and New York anti-discrimination laws. The plaintiffs’ attorney stated that it is a “good resolution” for her clients and “provides a framework for other companies in the industry to improve their practices with respect to pay equity.”
Mastercard denied all wrongdoing as part of the settlement. A Mastercard spokesperson asserted that the company “strongly disagreed with the allegations in the lawsuit but that settling the case was in the best interest of all involved.” In addition to the $26 million, Mastercard agreed to hire consultants to audit its pay practices for three years and an industrial psychologist who will review the company’s “career ecosystem” for bias. The court still must approve the settlement.