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The Almighty Buck Technology IT

Silicon Valley Big Data Startup Palantir Responds To Labor Department's Discrimination Lawsuit (fortune.com) 80

Silicon Valley's big data startup Palantir, founded by tech billionaire Peter Thiel, has filed a response to the Department of Labor after the agency sued the company for discriminating against Asian job applicants. From a Fortune report: Palantir says that no discrimination took place and that the Labor Department's statistical analysis -- the basis for the recent suit -- is faulty. The suit, according to Palantir's 15-page response, wrongly suggests that the company "should have hired a workforce that matched the racial composition of the group of individuals whose resumes Palantir received, without regard to candidate qualifications." Palantir's response also points out that the suit addressed only three out of 44 job titles for which Palantir hired employees within the 18-month analysis period conducted by the Labor Department. What's more, says the response, 36% of those eventually hired across all the job openings within that timeframe were Asian -- a rate that exceeds the percentage of qualified Asian employees in the external labor market, according to stats from the U.S. Equal Employment Opportunity Commission.
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Silicon Valley Big Data Startup Palantir Responds To Labor Department's Discrimination Lawsuit

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  • by Anonymous Coward on Saturday October 15, 2016 @04:39PM (#53082687)

    It's wrong BECAUSE they hired a bunch of asians. It simply isn't fair to Americans who were raised with an institutionalized inability to do math.

  • by American AC in Paris ( 230456 ) on Saturday October 15, 2016 @04:57PM (#53082731) Homepage
    ...in what universe is a 12-year-old company a startup?
    • Re: (Score:3, Insightful)

      by Anonymous Coward

      Depends how long you can keep bilking investors into giving you long term loans

    • *Bill Clinton voice*
      "Could you please explain to me what the definition of 'Startup' is?"

      Heh

  • guilty! (Score:5, Insightful)

    by ooloorie ( 4394035 ) on Saturday October 15, 2016 @04:58PM (#53082735)

    36% of those eventually hired across all the job openings within that timeframe were Asian -- a rate that exceeds the percentage of qualified Asian employees in the external labor market,

    See, they are guilty after all!

    (This is pretty obviously a politically motivated action by the administration, to punish Thiel for supporting libertarian and conservative causes. This will likely be followed by dropping government contracts, whether or not the company is found guilty of any wrongdoing.)

    • Re: (Score:3, Informative)

      by AmiMoJo ( 196126 )

      Lies, damned lies and statistics.

      36%... But in what kind of work? If they are including all the low paid stuff, the call centre staff or outsourced contract coders etc...

      I actually bothered to read the Department of Labour's complaint. It's more than just a simply statistical aberration. The response from Palantir is clearly designed more for PR than as a legal argument, e.g. the bit about them only considering 3 job titles. Yeah, they looked at high skill jobs where the problem was, that's the normal way i

      • Re:guilty! (Score:5, Insightful)

        by Anonymous Coward on Saturday October 15, 2016 @05:34PM (#53082825)

        Or maybe they, *gasp*, hire based on qualifications and merit rather than some racist guideline the U.S. Equal Employment Opportunity Commission has laid out.

        Equal opportunity does not mean equal outcome.

        • Or maybe they, *gasp*, hire based on qualifications and merit rather than some racist guideline the U.S. Equal Employment Opportunity Commission has laid out.

          Equal opportunity does not mean equal outcome.

          You are NOT allowed to do that. EVER. BAD, Anonymous commenter. BAD! *rolls up newspaper*

      • Re:guilty! (Score:5, Interesting)

        by ooloorie ( 4394035 ) on Saturday October 15, 2016 @06:14PM (#53082915)

        I actually bothered to read the Department of Labour's complaint. It's more than just a simply statistical aberration.

        The idea that hiring for any company or job should be statistically representative of "the population" is ludicrous in and of itself. Any such enforcement is a farce.

        • by dwsobw ( 2723483 )
          One of their claims is that from 730 "qualified" applicants for positions as QA Engineer only one Asian were hired and six non-Asian. Even though 77% of applicants were Asian.
          So they do not claim that the hirings should be representative of "the population", just that this is an unlikely outcome for a discrimination free selection (actually they claim a chance of 1 in 741).
          • Re:guilty! (Score:5, Interesting)

            by ooloorie ( 4394035 ) on Saturday October 15, 2016 @08:13PM (#53083199)

            Even though 77% of applicants were Asian.
            So they do not claim that the hirings should be representative of "the population", just that this is an unlikely outcome for a discrimination free selection (actually they claim a chance of 1 in 741).

            The argument is bullshit no matter what "the population" refers to (that's why I put it in quotes). Companies select the best applicants from a pool of applicants, not a random subset of people who meet the requirements. That is almost guaranteed to result in a highly biased selection of applicants when you look at gender or cultural background, even in the absence of any bias.

            To see how subtle this can be, consider a large applicant pool of equally qualified men and women (on average). If you pick the 7 best applicants, they will almost all be male, yet there is no gender discrimination. Likewise, if you pick the 7 worst applicants, they will also almost all be male. That's because male and female populations have different variances even when they have the same averages. Another counterintuitive property of these kinds of selections is that the law of large numbers works against you: the larger the applicant pool, the more biased the outcome of the selection. That's why Nobel prize winners are overwhelmingly male, and why prisons are also filled primarily with males.

            The DOL statisticians aren't stupid, they understand this, which strengthens the case that this is malicious, politically motivated persecution of a political opponent.

        • by AHuxley ( 892839 )
          Thinking in terms of US competitiveness who would want to push for '"the population" to distract US firms?

          In a few easy steps other nations could be enjoying a flood of export quality US design jobs.
          Position your nation as smart, safe, clean, friendly, low tax, free of government interference and have your top graduates ready.
          US brands will be sending your smart nation design work in a few years just to protect the shareholders.
          Just fund US lawyers to enforce that neutral selection process and big br
        • by AmiMoJo ( 196126 )

          I agree, but that's not what the complaint says. You fell for their misdirection.

          • Here is the argument that the DOL is making:

            "For the QA Engineer position, from a pool of more than 730 qualified applicants, approximately 77% of whom were asian, Palantir hired six non-Asian applicants and only one Asian applicant. The adverse impact calculated by OFCCP exceeds three standard deviations. The likelihood that this result occurred according to chance is approximately one in 741.

            That is, they are making an argument (in statistical terms) about random samples from the population of applicants,

            • by AmiMoJo ( 196126 )

              That's the summary. Keep reading for the detailed argument.

              • That's the summary. Keep reading for the detailed argument.

                If you had actually read the complaint, you'd know that there is no more "detailed argument" in the report about the statistics. The entire "analysis" is limited to page 3, 20 lines of 12pt text, consisting of three paragraphs that repeat the above kind of statement for three different jobs, and a fourt paragraph making unsubstantiated claims of additional bias.

                You are blowing smoke out of your ass and pretending you have read the report when you o

            • Here is the argument that the DOL is making:

              "For the QA Engineer position, from a pool of more than 730 qualified applicants, approximately 77% of whom were asian, Palantir hired six non-Asian applicants and only one Asian applicant. The adverse impact calculated by OFCCP exceeds three standard deviations. The likelihood that this result occurred according to chance is approximately one in 741.

              That is, they are making an argument (in statistical terms) about random samples from the population of applicants, and that argument is utterly wrong.

              So if I understand correctly, the DOL is saying that when presented with qualified candidates of this racial distribution, the odds that the "best 7" would consist of one Asian and six non-Asians are 1 in 741? As far as odds go, that's not so low as to be mathematically impossible. Consider the number of companies hiring for a position at any given time, and the odds of one of those companies facing a 1-in-741 scenarios is not that low. I think you'd need to actually examine the particulars of the applic

              • This isn't to say they didn't do anything wrong, just that "there's a 0.135% chance you're not racist" shouldn't be enough for a conviction.

                Actually, I think if that number were right, it is sufficient for liability in civil and/or administrative proceedings ("preponderance of the evidence"). The trouble is that it i woefully wrong.

                I think you'd need to actually examine the particulars of the applicants to determine whether the chosen candidates were not actually a better choice in some way than those not c

    • by murdocj ( 543661 )

      yes, yes, of course, it's all part of the international conspiracy of the media, the bankers, the administration, the IRS, the Mexicans, the Republican leadership, and pretty much everybody else.

      • yes, yes, of course, it's all part of the international conspiracy of the media, the bankers, the administration, the IRS, the Mexicans, the Republican leadership, and pretty much everybody else.

        No conspiracy needed here; it's the political appointees in the DOL doing what the people that hired them wanted them to do.

  • Comment removed (Score:5, Insightful)

    by account_deleted ( 4530225 ) on Saturday October 15, 2016 @05:06PM (#53082747)
    Comment removed based on user account deletion
    • Re: (Score:3, Interesting)

      by dwsobw ( 2723483 )
      They allege that from 1160 applicants for positions as Software Engineers only 11 Asian were hired, while 14 non-Asians were hired. Even though 85% of applicants were Asian.
      Not sure that this is enough data to prove discrimination, but at first glance those numbers do warrant some suspicion.
      • by lucm ( 889690 )

        Do we need to repeat the whole discussion from the original story? Anyone who hires in IT will tell you that nowadays you get a tidal wave of resumes from unqualified Indians that are crammed with buzzwords and acronyms that "look" legit. When you remove that thick layer of spam you usually get a more diverse array of candidates.

      • by Anonymous Coward

        Discrimination would be if NO Asians were hired.

        God I hate P.C. america.

    • And of course, we never threaten to jail political opponents [npr.org] in this country. *That* would be a dictatorship!!!

      I read that quote the other day, and my first response was "yeah, we totally fukken' do!".

      I could think of a half dozen examples off the top, but here's a good list [thefederalist.com] of previous Democratic examples.

      From that article:

      They seem to be forgetting that throwing the book at one’s political opponents is what Democrats do all the time. Here’s 16 times Democrats tried to prosecute their opponents for political gain, not justice.

      Looking at the press bias in this election, we are totally boned as a nation. I expect we'll have rioting in several cities after the election.

      • Press bias == reporting what Trump says

  • by Anonymous Coward on Saturday October 15, 2016 @05:49PM (#53082857)

    The Chinese restaurant down the street has a higher than average ratio of Asians working there. Shit, same deal with the Mexican restaurant. Whole lotta Hispanics working there.

  • When I had physics lab class, they taught me that the math for statistics doesn't really apply when the sample size is smaller than 200 or so. When the Labor Department starts talking about percentages where the pool of qualified applicants is only 130, I think they might ought to have at least one "we don't want you because you're asian" anecdote to go along with their percentages to form their lawsuit. Of course, if they have a law written so that the sample size doesn't matter, then they win, regardless
    • by dwsobw ( 2723483 )
      Well their other two samples are 1160 and 730 applicants.
      • How many positions?
        • by dwsobw ( 2723483 )
          25 and 7. I guess that they claim that the applicants numbers count, because "[...] Asian applicants were routinely eliminated during the resume screen and telephone interview phases despite being as qualified as white applicants [...]". https://www.dol.gov/sites/defa... [dol.gov]
          • If they converted 1160 "qualified on 'paper'" applicants to (say) 205 next round of interview applicants and eliminated all of one ethnicity in that process then statistics are a fine way to show bias. 25 and 7 ultimate positions aren't enough to use statistics alone to make the case, particularly when 11 out of the 25 and one out of the 7 were asian. So, the number of cases where they claim bias did the decision making are 10 or fewer. I'm not saying that the department of labor is wrong. But, I am sayin
            • If they converted 1160 "qualified on 'paper'" applicants to (say) 205 next round of interview applicants and eliminated all of one ethnicity in that process then statistics are a fine way to show bias. 25 and 7 ultimate positions aren't enough to use statistics alone to make the case, particularly when 11 out of the 25 and one out of the 7 were asian. So, the number of cases where they claim bias did the decision making are 10 or fewer. I'm not saying that the department of labor is wrong. But, I am saying that it's idiotic to use only statistical mathematics to argue about 10 decisions. They need additional evidence of bias.

              Agreed. Side-note and would love to hear your thoughts on this (this is a real question, not some BS or trick)...

              Pre-question info - if you have 100 applicants; 40 asian; 30 white; 20 hispanic; 10 misc... They all have resumes that show that they meet the direct technical knowledge specifications for a position (e.g. Oracle Database Migration, Windows Server 2008+ administration, etc) but have an interesting little logic which is perfectly valid in there: "able to think outside the box".

              All 100 are interv

              • If your company is hiring 10000 people and the race demographics are really skewed, there's a problem there. If the number of positions you're filling is in double digits, trying to enforce percentages is total BS. It's like using quantum mechanics to get a 100% accurate prediction for 20 atoms.
      • How do you define "applicant" though? It's not as though most jobs these days actually make you fill out an application form, after all.

        Is it: "someone who's submitted their resume on the web site"? In my experience, 90% or more of these will never even be seen by a human. They'll get filtered either for not having the right keyword match, or for poor spelling or grammar. Of the remainder, most will get little more than a cursory glance. Trends for what constitutes a good resume change over time. Five

  • This has nothing to do with discrimination. Peter Thiel is a major supporter of Trump [nytimes.com] and Obama administration is now punishing him. This is no different than Obama's IRS going after Tea-party organizations before the last elections.

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