Palantir will shell out $1.7 million to settle claims that it discriminated against Asian engineers

Palantir is settling allegations by the Department of Labor that its hiring practices for engineers discriminated against Asian people. It hasagreed topay $1,659,434 in back wages and stock options to impacted employees. It will also extend job offers to eight Asian people, department says.That's an about-face from the company's earlier response afterthe Labor Department originally accuseditof "systemic hiring discrimination" late last year.Palantir is a big data startup that sells many of its tools and consulting services to the federal government. The issuearose because, as a government contractor, Palantir must report its diversity statistics to the government. The Labor Department sifted through these reports and concludedthat even though Palantir received a huge number of qualified Asian applicants for certain roles, it was hiring only small numbers of them.Palantir, being the big data company that it is, did its own sifting andproduced a data-filled response that it said refuted the allegations and showed that in some tech titles 25%-38% of its employees were Asians.Apparently, Palantirs protestations weren't enough on to satisfy government regulators, sothe company agreed to settle.Palantir sent Business Insider a statement that said "we disagree with the allegations made by the Department of Labor. We settled this matter, without any admission of liability, in order to focus on our work. We continue to stand by our employment record and are glad to have resolved this case.'This was a particularly unusual case.In terms of diversity stats at most tech companies,African-Americans, Latin-Americans, and women tend to be themost underrepresented groups, compared to their percentage in the general population, withAsians being better represented, according to the Equal Employment Opportunity Commission.SEE ALSO:The alarming inside story of a failed Google acquisition, and an employee who was hospitalizedJoin the conversation about this storyNOW WATCH: People are outraged by this shocking video showing a passenger forcibly dragged off a United Airlines plane
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