Mastercard agrees to $26 mln settlement in pay bias lawsuit
By Daniel Wiessner
January 15, 20258:00 AM GMT+11Updated January 15, 2025




Item 1 of 2 Smartphone with Mastercard logo is seen in front of displayed stock graph in this illustration taken, July 15, 2021. REUTERS/Dado Ruvic/Illustration/File photo
[1/2]Smartphone with Mastercard logo is seen in front of displayed stock graph in this illustration taken, July 15, 2021. REUTERS/Dado Ruvic/Illustration/File photo Purchase Licensing Rights, opens new tab


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Jan 14 (Reuters) - Mastercard (MA.N), opens new tab has agreed to pay $26 million and audit its employment practices to settle claims that it systematically underpaid an estimated 7,500 female, Black, and Hispanic employees across the country, according to a court filing on Tuesday.
Four former Mastercard employees in filings in New York federal court accused the payment processing giant, opens new tab of routinely hiring women and workers of color into lower-paying job roles. The bias compounded over time as employees received smaller raises and fewer promotions than white men doing the same work, the plaintiffs said.
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The settlement, opens new tab was filed at the same time as the lawsuit, a common practice that allows for classes to be formally certified and for court oversight of settlements.
Mastercard denied wrongdoing in the settlement, which must be approved by a federal judge. Seth Eisen, a spokesperson for the company, said it strongly disagreed with the allegations in the lawsuit but that settling the case was in the best interest of all involved.
"It's essential that we have a workplace where all employees feel valued, respected and empowered to reach their greatest potential," Eisen said.
Along with the payout, Mastercard agreed to hire consultants to audit its pay practices and an industrial psychologist who will review the company's "career ecosystem," according to court filings.
Cara Greene of Outten & Golden, who represents the plaintiffs, said the non-monetary terms of the settlement will help ensure that Mastercard maintains an equitable workplace for women and people of color whom it employs.
"Settlements like this help to level the playing field and move the entire industry closer to pay equity," Greene said in a statement.
According to the lawsuit, in 2023 Mastercard's median pay for Black and Hispanic employees was 94.3% of that for white employees, while women earned 96.4% of compensation paid to their male colleagues.
The lawsuit accuses Mastercard of violating federal laws banning pay discrimination and workplace sex and race bias, and comparable New York laws.
The case is Hayman v. Mastercard, U.S. District Court for the Southern District of New York, No. 7:25-cv-00340.
For the plaintiffs: Cara Greene, Adam Klein, Nantiya Ruan, Chauniqua Young, Shira Gelfand, and Jennifer Davidson of Outten & Golden