Facebook, Employers Hit With Gender Discrimination Suit Over Job Ad Targeting

Facebook, Employers Hit With Gender Discrimination Suit Over Job Ad Targeting

A group of job seekers, backed by the Communications Workers of America and the American Civil Liberties Union, filed charges with the Equal Employment Opportunity Commission on Tuesday against Facebook and nine employers who they say used the social media site’s demographic targeting features to discriminate against female candidates in job ads, the New York Times reports:

The employers appear to have used Facebook’s targeting technology to exclude women from the users who received their advertisements, which highlighted openings for jobs like truck driver and window installer. The charges were filed on behalf of any women who searched for a job on Facebook during roughly the past year. …

The lawyers involved in the case said they discovered the targeting by supervising a group of workers who performed job searches through their Facebook accounts and clicked on a variety of employment ads. For each ad, the job seekers opened a standard Facebook disclosure explaining why they received it. The disclosure for the problematic ads said the users received them because they were men, often between a certain age and in a certain location.

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US Gender Pay Gap Not Closing, Census Data Shows

US Gender Pay Gap Not Closing, Census Data Shows

The US made no progress toward closing the gender pay gap between 2016 and 2017, with the ratio between women’s and men’s average earnings stalling at 80.5 cents to the dollar and the gaps between women of color and white men actually widening, the Institute for Women’s Policy Research reported last week:

If current trends continue, women will not receive equal pay until 2059, according to a related IWPR analysis of trends in earnings since 1960. This projection for equal pay remains unchanged for the last two years, indicating that the rate of progress has stalled.

Women of all major racial and ethnic groups saw the wage gap with White men widen in 2017, with especially large gaps facing Black and Hispanic women. Hispanic women made just 53 cents for every dollar earned by a White man (down from 54.4 cents in 2016) and Black women made just 60.8 cents (down from 62.5 cents in 2016). At $32,002 per year of full-time work, median earnings for Hispanic women are below the qualifying income threshold for eligibility for food stamps for a family of four.

“Closing the wage gap is not a zero-sum game—gains for one gender do not require losses for the other,” the IWPR points out in a fact sheet on the pay gap. While the gender gap has narrowed over the past several decades, wage stagnation in the US is an ongoing concern for men and women alike:

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ReimagineHR: Empowering Girls to Close the Tech Skills Gap

ReimagineHR: Empowering Girls to Close the Tech Skills Gap

Across a variety of industries, the demand for talent with digital skills continues to outstrip the supply. In recent years, many companies have realized that one way to fill this skills gap is to address the significant gender imbalance in roles like software engineering, where men outnumber women three-to-one in the US and by even larger margins in other countries like the UK and China.

This hasn’t always been the case; women were the first programmers in the early days of computing, before coding was seen as a prestigious and lucrative profession. Yet the real shift toward programming being such a male-dominated profession is even more recent, Girls Who Code founder Reshma Saujani pointed out in a keynote address at Gartner’s ReimagineHR event in London on Wednesday: In 1995, women made up almost 40 percent of the computing workforce in the US, whereas today, they make up less than 25 percent. And at a time when there are roughly 500,000 unfilled positions in computing in the US and as many as 700,000 in the UK, Saujani argued, the issue isn’t a question of gender parity for its own sake: companies need women in tech just as much as women deserve the opportunity to do these jobs.

So why are so few women taking jobs in computing? For one thing, the tech industry has developed a reputation as an unwelcoming work environment for women: Sexism and sexual harassment scandals have emerged at several major tech companies in the past two years, while women in tech say they are often pressured to cut short the leave they take when they start families, even as tech companies continue to offer world-class parental leave policies. To that end, bringing back women who left the workforce to raise children or care for aging relatives is one way companies are looking to close their tech talent gaps.

Yet a more fundamental obstacle, Saujani explained, comes much earlier in women’s lives.

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Salary History-Based Gender Pay Gap Case May Head to US Supreme Court

Salary History-Based Gender Pay Gap Case May Head to US Supreme Court

In April, the Ninth US Circuit Court of Appeals ruled in an en banc rehearing of a case decided by a three-judge panel last year that differences in past salaries don’t justify disparities in pay between male and female employees in the same role. The unanimous ruling, authored by the late Judge Stephen Reinhardt, concluded that even though the Fresno, California, school district’s pay structure was not discriminatory in intent, it perpetuated gender-based wage disparities in a manner “contrary to the text and history of the Equal Pay Act.”

Because pay gender disparities in pay may have arisen from sex discrimination, the court reasoned, a system that allows these gaps to persist throughout an employee’s career effectively functions to “perpetuate rather than eliminate the pervasive discrimination at which the Act was aimed.” The Ninth Circuit’s judgment is in keeping with a trend that has been building up over the past few years in which employers are feeling greater pressure to stop basing pay structures on salary history, due to the potential for perpetuating unfair pay gaps. Appeals courts have divided on the question, however, with the 10th and 11th Circuits also finding that salary history-based pay systems are not exempt from Equal Pay Act claims, while the Seventh and Eighth Circuits have disagreed.

A circuit court split is often a prelude to Supreme Court review of a legal question. The Fresno school district had planned to appeal the Ninth Circuit’s ruling to the highest court, but had suspended that process while it attempted to reach a settlement with the plaintiff, Aileen Rizo. Now, however, the settlement talks have broken down and the district is preparing to petition the Supreme Court for review next month, Erin Mulvaney reports at the National Law Journal. That doesn’t mean the court will take the case, Mulvaney notes, but “any petition would likely fuel friend-of-the-court briefs”:

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California Bill to Mandate Women on Boards Faces Challenge From Businesses

California Bill to Mandate Women on Boards Faces Challenge From Businesses

The California legislature is considering a bill that would make it the first state in the US to require women’s representation on the boards of companies headquartered there, but the business community is pushing back, saying the proposed mandate is unconstitutional and counterproductive, Antoinette Siu reports at TechCrunch:

SB 826, which won Senate approval with only Democratic votes and has until the end of August to clear the Assembly, would require publicly held companies headquartered in California to have at least one woman on their boards of directors by end of next year. By 2021, companies with boards of five directors must have at least two women, and companies with six-member boards must have at least three women. Firms failing to comply would face a fine. …

Yet critics of the bill say it violates the federal and state constitutions. Business associations say the rule would require companies to discriminate against men wanting to serve on boards, as well as conflict with corporate law that says the internal affairs of a corporation should be governed by the state law in which it is incorporated. This bill would apply to companies headquartered in California. … Similarly, a legislative analysis of the bill cautioned that it could get challenged on equal protection grounds, and that it would be difficult to defend, requiring the state to prove a compelling government interest in such a quota system for a private corporation.

Legislative mandates or quotas for women on corporate boards are rare, with only a few European countries having adopted them. Norway was the first to do so, introducing a 40 percent quota in 2003, while France, Germany, Iceland, and Spain have since introduced their own mandates. Sweden had an opportunity to join this group but declined it early last year, when the parliament voted down a proposal to fine listed companies where women make up less than 40 percent of directors. In these countries, quotas have proven effective at driving gender equality on boards; critics acknowledge this, but argue that making women’s representation a matter of compliance isn’t changing corporate cultures to really value women in leadership.

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Massachusetts Enacts New Restrictions on Non-Compete Agreements

Massachusetts Enacts New Restrictions on Non-Compete Agreements

After several years of legislative wrangling, Massachusetts Governor Charlie Baker on Friday signed a bill into law that will limit the conditions under which employers in the state can enforce non-compete agreements on their employees. The law goes into effect on October 1 and will apply to all non-compete agreements signed after that date. Lisa Nagele-Piazza outlines the law’s provisions at SHRM:

The Massachusetts law aims to prevent overuse of such agreements by prohibiting noncompetes with employees who are:

  • Nonexempt under the Fair Labor Standards Act.
  • Under age 18.
  • Part-time college or graduate student workers.

For a noncompete to be valid, it must be:

  • Limited to 12 months in duration (with some exceptions).
  • Presented to new hires either with an offer letter or 10 days prior to an employee’s start date, whichever is earlier.
  • Signed by the employer and the worker.

The agreement must also inform employees of their right to consult legal counsel before signing it. If employers want existing staff to sign noncompetes, they will need to offer “fair and reasonable” consideration beyond continued employment for the agreements to be valid.

The new law is also the first in the U.S. to require that employers offer “garden leave” pay to former employees bound by non-competes. The law requires to pay these employees 50 percent of the highest base salary they earned in the prior two years for one year after their departure, or some other “mutually agreed upon consideration.”

That alternative represents a huge loophole in the law, Michael Elkon, an attorney with Fisher Phillips in Atlanta, tells Nagele-Piazza. What sort of “consideration” counts as valid for the purposes of this law will likely be hashed out in court in the coming years, but Elkon notes that employers will expose themselves to a risk of litigation (before an unsympathetic judge) if they attempt to get around this provision by offering an employee a “consideration” that undercuts the law’s guidelines.

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Diversity in Big-Company Leadership Shrinks as PepsiCo’s Indra Nooyi Prepares to Step Down

Diversity in Big-Company Leadership Shrinks as PepsiCo’s Indra Nooyi Prepares to Step Down

After 12 years at the helm of the multinational food and beverage conglomerate, PepsiCo CEO Indra Nooyi announced on Monday that she would retire from her position in October. Nooyi will be succeeded by Ramon Laguarta, the head of PepsiCo’s Europe and sub-Saharan Africa business, who has been with the company for 22 years. In an interview with the New York Times, the 62-year-old departing CEO said she was stepping down now in part to spend more time with her 86-year-old mother:

“You reach a point where you get tired,” Ms. Nooyi said. “Physically tired. And your family starts to demand more time of you. I’ve reached that point.” Inside PepsiCo, Ms. Nooyi was known for working incredibly long hours — as many as 20 hours a day, often seven days a week. When asked Monday whether she felt that made her a good role model for other women, Ms. Nooyi said, “probably not.”

“But you have to remember when I started working in this corporate world, there were hardly any women in the jobs I was in. At that time, 30 or 40 years ago, expectations for women were unreasonable. We had to produce a better product and do everything much better than the men in order to move ahead,” Ms. Nooyi said.

Nooyi’s departure will leave just 24 women leading S&P 500 companies, according to the non-profit organization Catalyst, though that number will bounce back up to 25 again when Kathy Warden takes up her new post as CEO of Northrop Grumman next January. Other women have stepped down from CEO roles at big companies this year, however, including Denise Morrison of Campbell Soup and Irene Rosenfeld of the snack food maker Mondelez International, so the gender balance of this exclusive club is on a downward trend.

Nooyi has discussed her remarkable path to corporate leadership in a number of interviews, as well as why more women don’t make it to the top. In her view, the dearth of women in the C-suite has less to do with sexist conceptions of what leadership looks like and more to do with a pipeline problem, Vauhini Vara explains at the Atlantic, pointing to an interview she gave on the Freakonomics podcast earlier this year. That’s because the critical point in many professionals’ careers coincides with the time in their lives when they become parents and raise their children—a responsibility that still falls primarily on women:

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