Mastercard Settles Discrimination Claims for $26 Million, Promises Hiring Practice Overhaul
America ı By Rihem Akkouche
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Mastercard Inc. has agreed to settle a proposed class and collective action lawsuit for $26 million, addressing allegations of sex, gender, race, and ethnicity-based employment discrimination. The settlement, filed Tuesday in New York federal court, resolves claims that Mastercard underpaid thousands of female, Black, and Hispanic employees.
While Mastercard denied any wrongdoing, it agreed to the settlement following an investigation into the claims and months of negotiations, including three days of mediation. The plaintiffs, including Deborah Hayman, G.A. Gomes, L. Kasomo, and S. Brown, sought the court's preliminary approval of the settlement, which they said includes "significant benefits" for class members and aims to ensure a fair and equitable hiring process for underrepresented groups across the company.
The settlement class encompasses approximately 7,500 employees who worked for Mastercard since 2016. These employees will receive backpay and other damages based on their length of employment. Additionally, Mastercard has committed to implementing policies to promote gender and race pay equity, including hiring an industrial organizational psychology specialist to review its "career ecosystem."
The settlement also includes an independent review of Mastercard's hiring and promotion policies, and the company will share any resulting recommendations with the plaintiffs' legal team. The plaintiffs' attorneys at Outten & Golden LLP are seeking $8.7 million in fees.
In their lawsuit, the plaintiffs accused Mastercard of maintaining compensation and promotion policies that disproportionately underpaid female, Black, and Hispanic employees. They argued that these employees were often hired into lower-level positions compared to their male and white counterparts, resulting in lower pay for similar work. In 2023, they claimed, the median pay for Black and Hispanic employees at Mastercard was 94.3% of that for white employees, while female employees made 96.4% of their male counterparts' pay.
Mastercard spokesperson Seth Eisen said the company was committed to continuing to support its employees and believed it was in the best interest of all parties to settle the case. He emphasized that the settlement would allow the company to focus on maintaining a workplace where all employees feel valued and respected.
Plaintiffs' attorney Cara E. Greene of Outten & Golden LLP called the settlement a "fair compromise" and praised its non-monetary terms, which she believes will help ensure Mastercard's workplace remains equitable for its diverse workforce.
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