Orrick sign Orrick, Herrington & Sutcliffe's office in Washington, D.C./photo by Diego Radzinschi

Oracle America Inc. on Wednesday sued the U.S. Labor Department in Washington federal court, urging a judge to curtail the power of an agency enforcer to investigate and prosecute workplace bias claims as the technology company wages a long and bitter fight to thwart Obama-era allegations of workplace bias.

The complaint, filed by a team from Orrick, Herrington & Sutcliffe, raised a constitutional challenge to the Labor Department's Office of Federal Contract Compliance Programs, or OFCCP, the component that investigates and can punish contractors found in violation of federal anti-discrimination protections. The compliance office in January 2017 sued Oracle for alleged pay bias, and that case is pending at the Labor Department.

"The OFCCP has subjected Oracle to administrative proceedings that are unauthorized and impermissible, in violation of the law, and separation of powers," Orrick lawyers Andrew Silverman and Robbie Manhas said in the complaint. The suit confronts the Labor Department's creation of "an administrative trial system wherein agency officials prosecute and adjudicate discrimination claims against government contractors and then award broad injunctive and compensatory relief if the agency finds violations."

A representative for the Labor Department was not immediately reached for comment Wednesday.

The Obama-era Labor Department accused Oracle of broad discrimination against female, African American and Asian employees. The case alleged compensation, recruiting and hiring discrimination. In an amended complaint, labor enforcers said the alleged bias cost women and minority workers $400 million in lost wages.

"Oracle's suppression of pay for its non-white, non-male employees is so extreme that it persists and gets worse over long careers," the Labor Department alleged. "Female, black and Asian employees with years of experience are paid as much as 25 percent less than their peers."

Oracle has denied the government's claims, asserting the company is "in compliance with our regulatory obligations, committed to equality and proud of our employees."

Adverse findings against government contractors could threaten current and future federal government contracts. Many cases against big companies settle, sometimes for millions of dollars. OFCCP said last month that fiscal year 2019 was "by far its most successful year in both enforcement and compliance assistance." The office said it had obtained a record $40.5 million in monetary settlements for affected class members.

"Through a combination of effective enforcement and proactive compliance assistance, OFCCP has made a major impact on ensuring equal employment opportunity for America's workforce, and will continue to do so in the upcoming year," Craig Leen, the director of OFCCP, said in a statement last month.

Oracle's suit said OFCCP in 1977 "radically departed from its previous understanding of its power. Without authority, the OFCCP transformed itself into a super-EEOC by giving itself power that exceeds what Congress granted to the EEOC." The complaint alleged a "power grab" remains in place today.

In its complaint, Oracle took steps to portray the company as broadly supportive of anti-discrimination laws. Other technology companies fighting claims of workplace bias have made similar assertions in court papers.

"Oracle recognizes that lawful, constitutional prosecution and adjudication of employment claims against employers, including government contractors, can play an important role in promoting equal employment and ending employment discrimination, in all forms," Oracle's lawyers said in their lawsuit. "Oracle opposes discrimination, which has no place in employment or anywhere else. The issue here is the place and manner in which claims of discrimination and affirmative-action violations are prosecuted and adjudicated. Those claims must be pursued fairly and constitutionally."

In 2017, a Trump administration proposal would have disbanded the Labor Department's contract compliance enforcer and merged it with the U.S. Equal Employment Opportunity Commission. That move, according to the Trump administration, would "reduce operational redundancies, promote efficiencies, improve services to citizens, and strengthen civil rights enforcement."

 

Oracle's complaint is posted below:

 

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