Palo Alto-based Palantir Technologies was ordered to pay nearly $1.7 million in back wages by the U.S. Department of Labor in a settlement over allegations of hiring discrimination, the agency announced Tuesday in a press release.
The department's Office of Federal Contract Compliance Programs alleged the software company of unfair hiring practices against Asian applicants for engineering jobs. The money will be paid to the class affected by the suit.
The suit alleges the company of discriminating against three applicants who were interested in working as a quality assurance engineer, software engineer and quality assurance engineer intern.
The software company headquartered downtown at 100 Hamilton Ave. is a federal contractor. Executive Order 11246 prohibits a company from employee discrimination based on race, color, sex or national origin.
The federal office suspected the practices began in January 2010 and started investigating the company in July 2011.
In September, the department filed the complaint after it was "unable to find resolve the findings" of its investigation with Palantir, but the company said it disputed the accusations.
"We appreciate Palantir working with us to resolve these issues," office acting director Thomas Dowd said in a press release. "Together, we will ensure that the company complies with equal employment opportunity laws in its recruitment, hiring and other employment practices."
"We disagree with the allegations made by the Department of Labor," Palantir spokeswoman Lisa Gordon said in an email. "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."