This article was last updated on November 10, 2023
Apple’s $25 Million Settlement
Apple has reached a $25 million (€23.4 million) settlement as part of a long-running investigation into illegal labor practices. The tech company faced allegations of hiring discrimination related to its employment of asylum seekers. The US Department of Justice revealed that Apple engaged in biased hiring practices by favoring asylum seekers over American citizens or status holders for specific positions, amounting to employment discrimination.
According to the ministry, Apple failed to advertise certain job vacancies on its official website, deviating from its usual recruitment practices. Additionally, interested individuals were required to submit their applications in person, rather than through the standard online process, resulting in minimal to no responses from applicants with indefinite work permits.
Apple took advantage of a federal program that enables asylum seekers to secure a residence permit through their employer. This strategy contributed to reduced turnover rates as individuals with residency permits are less likely to switch employers. Furthermore, immigrant labor costs are often lower, providing an economic advantage for the company.
The US Department of Justice highlighted that this settlement represents the largest of its kind for discrimination against American citizens in the labor market. As part of the settlement, Apple has committed to instituting improvements in its hiring practices. The majority of the settlement amount, totaling $18.25 million, will be allocated to a fund dedicated to compensating victims of the discriminatory practices.
Despite the significant settlement, the $25 million fine is relatively modest for Apple, given the company’s robust financial standing. The tech giant closed its fiscal year in September with an annual turnover of $383 billion, indicating the minimal financial impact of the settlement.