The Labor Department is suing Oracle, claiming that the technology giant pays white male workers more than their non-white and female counterparts with the same job titles.
The lawsuit also says that the company has a systemic practice of favoring Asian workers in its recruiting and hiring practices for product development and other technical roles, which results in hiring discrimination against non-Asian applicants.
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In a statement, Oracle on Wednesday called the lawsuit "politically motivated, based on false allegations and wholly without merit."
Earlier this month, the Labor Department sued Google, saying the company has refused to provide the department with employee compensation records and other information as part of an audit designed to ensure it isn't discriminating against workers.