'Systematically underpaid' | Mastercard settles $26m pay equity lawsuit, commits to workplace audits

Mastercard has agreed to pay $26million and implement workplace audits to resolve allegations that it systematically underpaid approximately 7,500 female, Black, and Hispanic employees.

The settlement, filed alongside a class-action lawsuit in New York federal court, highlights ongoing challenges with pay equity in corporate America.

The plaintiffs, four former employees, accused Mastercard of hiring women and workers of color into lower-paying roles, leading to cumulative disadvantages in raises and promotions compared to their white male peers. The lawsuit alleged that these practices violated federal and New York state laws prohibiting pay and workplace discrimination based on sex and race.

Mastercard settles

Despite denying any wrongdoing, Mastercard agreed to settle the claims, stating that it was the most effective path forward. “It's essential that we have a workplace where all employees feel valued, respected, and empowered to reach their greatest potential,” said a spokesperson.