Big Data analytics firm Palantir Technologies Inc. is being sued by the U.S. Department of Labor on the grounds that it discriminates against Asian job candidates.

The suit alleges that the company systematically rejected Asian applicants in the resume screening and telephone interview phases even when they were as qualified as white applicants. Allegations of employment discrimination stem from Palantir being randomly selected for a review which examines applicants for a given position compared to their backgrounds. Having detected an anomaly, the Labor Department then opens a wider investigation.

According to Reuters, in one example case studied, Palantir reviewed a pool of more than 130 qualified applicants for a number of positions. Some 73 percent of applicants were Asian, but only four Asian applicants were hired, along with 17 non-Asian applicants.

“The likelihood that this result occurred according to chance is approximately one in a billion,” the lawsuit notes.

In another job instance, 85 percent of applicants were Asian, with Palantir hiring 14 non-Asians and 11 Asians, odds of which were said to be 1 in 3.4 million.

Palantir denied the allegations in a statement, stating that “We are disappointed that the Department of Labor chose to proceed with an administrative action and firmly deny the allegations. Despite repeated efforts to highlight the results of our hiring practices, the Department of Labor relies on a narrow and flawed statistical analysis.” Palantir also noted that the finding relates only to three positions advertised by the company.

Obligations

Palantir has particular oversight by Government in its hiring practices not only because it is partially backed by the Central Intelligence Agency (CIA) but because it works as a contractor providing software and data analysis to the wide range of federal agencies: Federal Bureau of Investigation, U.S. Department of Defense, the Department of Homeland Security, the Department of Justice, the Securities and Exchange Commission, the U.S. Army and the U.S. Special Operations Command.

“To maintain contracts with the government, contractors are obligated to ensure hiring practices aren’t discriminatory. The government requires from those it works with a promise of affirmative action and equal employment opportunity,” the Department of Labor notes on its website.

If the court case against Palantir is successful, the company will be required to provide restitution. Moreover, the Office of Federal Contract Compliance Programs, which oversees government contracts, may also request that all contracts the company currently holds with government agencies are canceled and could ban it from being able to obtain further government contracts in the future.

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