Mastercard has reached a $26 million settlement to resolve a proposed class action filed by about 7,500 employees who alleged that the company underpaid Black, Hispanic, and female workers. The lawsuit claims that the card network did not offer equal pay for equal work, particularly among mid-level employees in various roles, including strategic partnerships and consumer marketing. While Mastercard denied the allegations and did not admit to any wrongdoing, the company agreed to the settlement in the interest of resolving the matter.
The settlement includes both monetary compensation and several non-monetary provisions aimed at ensuring greater workplace equity. Mastercard is required to conduct annual pay audits for three years, with the assistance of an external consulting firm, to assess and address any pay disparities. In addition, Mastercard will hire a psychologist to evaluate the company’s career ecosystem for bias, ensuring that systemic inequalities are identified and addressed. The settlement also mandates that Mastercard take steps to improve its diversity, equity, and inclusion efforts, with a focus on the advancement of women and people of color within the organization.
Outten & Golden, the law firm representing the plaintiffs, expressed that the settlement’s non-monetary terms will help create a more equitable workplace, particularly for underrepresented employees. Cara Greene, a partner at Outten & Golden and the lead counsel for the plaintiffs, emphasized that settlements like this one not only benefit the affected workers but also serve as a critical step toward achieving broader pay equity within the industry. “This settlement helps to level the playing field and move the entire industry closer to pay equity,” Greene said in a statement.
Mastercard, based in Purchase, New York, is the second-largest card network in the U.S. The company’s spokesperson stated that it disputes the allegations but believes settling the lawsuit is the best way forward to allow its teams to focus on their work and maintain a supportive environment. The employees included in the settlement held mid-level roles at Mastercard and were employed as far back as September 2016. However, the timeframes for those covered by the settlement vary by state. Some of the named plaintiffs in the case, like Deborah Hayman, worked at Mastercard in positions such as strategic partnerships manager, while others may no longer be with the company.
While the settlement has been agreed upon, it still requires court approval. Mastercard has emphasized that the settlement allows the company to continue to build a work culture that attracts the best talent, creating a place where employees can thrive and grow. The case was filed in the U.S. District Court for the Southern District of New York, but details about the exact timing of the filing were not disclosed. The settlement remains subject to judicial review and final approval.
