The Department of Justice unveiled a significant agreement with Apple to address accusations of illegal discrimination in the company's hiring and recruitment practices. The allegations specifically pertain to U.S. citizens and certain non-U.S. citizens with indefinite permission to reside and work in the United States.
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This photo taken on October 30, 2023 shows people visiting an Apple store in Shenyang, in China's northeastern Liaoning province.
Hiring Discrimination in Apple
Apple has reached a settlement, agreeing to pay up to $25 million to resolve allegations of engaging in hiring discrimination. The Verge reported that the Department of Justice revealed that $18.25 million will be allocated to a backpay fund for affected victims, with the remaining $6.75 million designated for civil penalties.
The investigation by the DOJ revealed that Apple breached the Immigration and Nationality Act during its recruitment process under a permanent labor certification program (PERM), which allows companies to hire foreign workers for permanent positions in the United States.
The department pointed out that Apple failed to advertise PERM job openings on its website, contrary to its usual practice of posting other positions. Additionally, the DOJ identified shortcomings in Apple's recruitment procedures, noting that the company exclusively accepted PERM position applications by mail and neglected certain electronically submitted applications from existing Apple employees.
These practices were deemed less effective, resulting in minimal applications for PERM positions from individuals with no expiration on their work authorization.
Apple's Response
In a settlement, Reuters reported that Apple denies accusations of involvement in illegal hiring practices. According to Apple spokesperson Fred Sainz, they acknowledged unintentional deviations from DOJ standards and agreed to a settlement to address concerns.
Apple has implemented a comprehensive remediation plan to comply with various government agencies' requirements as it continues to hire American workers and expand in the U.S. Apart from the potential $25 million fine, the Department of Justice stipulates that Apple must enhance its recruitment practices for all PERM positions.
This involves posting PERM job openings on its official job website and accepting applications electronically. The DOJ highlights that Apple has already taken corrective measures to address certain aspects of the situation.
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Under the terms of the $25 million settlement, Apple is obligated to pay $6.75 million in civil penalties and establish an $18.25 million back pay fund for eligible victims of discrimination. The agreement mandates that Apple align its recruitment for PERM positions more closely with its standard practices.
Specifically, Apple is required to broaden its recruitment efforts for all PERM positions, including posting these positions on its external job website, accepting electronic applications, and ensuring the searchability of applicants for PERM positions in its applicant tracking system.
Some of these measures have already been implemented by Apple following the initiation of the department's investigation. Additionally, Apple will provide training to its employees on the anti-discrimination requirements of the INA and be subject to departmental monitoring throughout the three-year period covered by the agreement.
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