UPDATE: March 7, 2021: An Amazon spokesperson told HR Dive the company "works hard to foster a diverse, equitable, and inclusive culture, and these allegations do not reflect those efforts or our values. We do not tolerate discrimination or harassment of any kind and thoroughly investigate all claims and take appropriate action. We are currently investigating the new allegations included in this lawsuit."
Dive Brief:
- Amazon.com Inc. is being sued for engaging in an alleged "systemic pattern" of discrimination against Black and female employees, according to a lawsuit filed March 1 in federal court in Washington, D.C. Allegations include frequent "slotting of Black employees into jobs and 'levels' that do not reflect their skills and qualifications'' with "much longer paths to promotion," as well as violations of the Equal Pay Act, according to court documents (Newman v. Amazon.com Inc., No. 1:21-cv-00531 (D.D.C., March 1, 2021)).
- The plaintiff, a Black woman, works at Amazon Web Services as a senior manager. Hired in early 2017 as a public policy manager, the plaintiff claimed she applied for and was qualified for a higher-level position, coming to Amazon after experience as a financial regulation and legislation advisor to a U.S. senator and members of the House of Representatives. "Within months" of beginning her role, she completed the workload equal to a senior manager, but her salary was equivalent to a manager's pay level, the lawsuit claimed. It took her two-and-a-half years to be promoted "to the level at which she should have been hired in the first place." The plaintiff also alleged that she was paid "significantly less than her white co-workers, particularly in valuable Amazon stock."
- There is a "sustained pattern of underrepresentation of Black and female employees in Amazon's upper ranks," the lawsuit claimed. The plaintiff alleged that a senior employee yanked on her hair and she was told by a senior manager she is "too direct" and "scary," according to the lawsuit. Co-workers also allegedly touched the hair of Black female employees without consent. The plaintiff filed a written complaint in June 2020 alleging a senior, male employee committed "vile and aggressive sexual assault and harassment" against her in the workplace, according to the lawsuit. In September 2020, the plaintiff filed a racial, sexual harassment and discrimination complaint with the Office Human Rights in Washington, D.C. The plaintiff is suing for past and future lost wages and an award of punitive damages.
Dive Insight:
Amazon has made gains in overall workforce racial diversity. However, public reports show there has been less improvement at the managerial level.
Among Amazon managers in the U.S, 56.4% identify as White; 19.5% Asian; 10.6% Black/African American; 9.5% as Hispanic/Latinx; and 0.7% as Native American. Comparatively, of Amazon employees in the U.S., 26.5% identify as Black or African American.
The latest lawsuit against the company follows a Feb. 26 investigation by Recode. The publication interviewed at least 10 Black individuals who are part of more than a dozen former and current Amazon corporate employees alleging the company failed "to create a corporate-wide environment where all Black employees feel welcomed and respected," according to the report.
Amazon is among companies that have received a shareholder proposal from the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) requesting the adoption of a diverse candidate search policy on the basis that workforce diversity enhances company performance. There has traditionally been "underrepresentation of women and minorities in leadership positions" at tech companies, Brandon Rees, deputy director of corporations and capital at AFL-CIO, told HR Dive in February.
Amazon submitted a letter to the Security and Exchanges Commission for permission to exclude the shareholder proposal from its proxy statement. Company leadership has indicated its "commitment to advancing diversity, equity, and inclusion as well as fostering a company culture that values and respects diversity and inclusion," Amazon stated in the letter.