Hollywood is losing out on $10 billion in revenue every year by underfunding work by Black creators

Michaela Coel I May Destroy You
Michaela Coel created, wrote, co-directed, and starred in “I May Destroy You.”

  • A McKinsey study found that Hollywood is losing out on $10 billion because of racial biases.
  • Black-led projected often receive less funding, but earn “higher relative returns.”
  • The study found from 2015-2019, 11% of leads/co-leads in films were portrayed by a Black person.
  • See more stories on Insider’s business page.

A recent study conducted by the consulting firm McKinsey found that Hollywood could see a boost in annual revenue by $10 billion, bringing revenues to more than $150 billion every year, if the industry addresses the racial inequalities that persist in film and television.

The McKinsey study found that “fewer Black-led stories get told, and when they are, these projects have been consistently underfunded and undervalued, despite often earning higher relative returns than other properties.”

For many black creatives in Hollywood there is an ongoing struggle that persists when it comes to being equally represented on-screen and behind the camera. The McKinsey study found that from 2015-2019 only 11% of leads/co-leads in movies were portrayed by Black people. In comparison to 89% of those roles portrayed by other races.

There are “financial and social barriers, as well as racial bias” that contribute to the ongoing disparities, McKinsey found, with economic inequality being one of the main reasons for less Black representation in Hollywood.

For Black families in the US, they typically earn $150,000 less than the median income for white families, according to McKinsey. “The result: low or no pay excludes many Black Americans from Hollywood from the start,” the study said.

Those biases and inequalities affect Black people seeking management and leadership roles within the TV and film industry, not just those on screen or behind the camera.

“I was one of few women and definitely few Black women there period, let alone in leadership, so there was no one to look up to,” one Black agent told McKinsey. “You learn to try not to take up too much space and speak only when you have something important to say. But then peers and others behind you get promoted ahead of you even when you are bringing more in.”

Black creatives within the TV and film industry have shifted their talents in recent years from traditional network television to streaming services such as Netflix and Hulu. Producer Shonda Rhimes reportedly ended her $10 million deal with ABC in 2018 to sign a four-year deal with Netflix, worth an estimated $150 million. Filmmaker Ava DuVernay signed a deal with Netflix that same year for an estimated $100 million, The Guardian reported.

Despite the influx of Black creators, Netflix still struggles with diversity on and off screen, though it has made some progress. In Netflix’s first diversity and inclusion study, released in February, the company revealed that the percentage of underrepresented leads/co leads overall increased from 26.4% in 2018 to 37.3% in 2019. The study also found that Black women represented just 6.2% of the 23.6% of women directors in the company’s projects.

And the lack of diversity goes beyond production companies. Ahead of this year’s Golden Globe Awards, the Los Angeles Times published a damning report about the diversity of the Hollywood Foreign Press Association, the body that determines the show’s nominees. In addition to the HFPA’s lack of diversity, the awards also came under intense scrutiny for overlooking successful Black-led films and television projects, such as Michaela Cole’s “I May Destroy You,” the Amazon Original film “One Night In Miami,” and “Judas and The Black Messiah.”

The Netflix original “Emily in Paris,” which was largely panned by critics, earned two Golden Globe nominations. The Times reported that members of the HFPA were flown to Paris by the show’s producers ahead of it being considered for nomination.

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Google will pay $2.6 million to workers over claims its hiring and pay practices were biased against women and Asians

FILE PHOTO: A logo of Google is seen at an office building in Zurich, Switzerland July 1, 2020.   REUTERS/Arnd Wiegmann
Logo of Google is seen at an office building in Zurich

Google has reached a deal with the US Department of Labor, requiring it to pay nearly $2.6 million in back wages to thousands of workers over claims that the company’s pay and hiring practices illegally disadvantaged women and Asians.

Google must also review its pay and hiring practices, conduct a gender pay equity study, and provide updates about its progress toward closing the gender pay gap as part of the deal, which was signed on January 15 and made public by the DOL on Monday. 

The department said that as part of an audit of several Google locations in Washington state, California, and New York, it had identified “preliminary indicators” that Google had failed to comply with a 1965 executive order that bars discrimination in the pay and hiring of federal contractors.

That audit revealed early evidence suggesting that, between 2014 and 2017, Google had paid female engineers at its Mountain View, California, as well as Seattle and Kirkland, Washington, locations “less than comparable male employees,” according to the DOL.

The agency also found evidence suggesting Google had discriminated against female and Asian applicants for engineering jobs at its San Francisco and Sunnyvale, California, locations as well as at the Kirkland facility.

“We believe everyone should be paid based upon the work they do, not who they are, and invest heavily to make our hiring and compensation processes fair and unbiased,” Google spokesperson Jennifer Rodstrom told Insider in a statement.

“For the past eight years, we have run annual internal pay equity analysis to identify and address any discrepancies. We’re pleased to have resolved this matter related to allegations from the 2014-2017 audits and remain committed to diversity and equity and to supporting our people in a way that allows them to do their best work,” Rodstrom added.

In total, around 2,565 women who worked at Google are eligible for back pay over wage discrimination allegations, while around 2,976 women and Asian applicants for Google jobs are eligible for back pay as a result of the alleged hiring discrimination.

In return for agreeing to the DOL’s “early resolution,” Google won’t have 39 of its facilities audited by the agency for five years, though the agency can still bring legal action if Google violates the agreement.

Google has faced allegations of racial and gender bias previously, including an ongoing class-action lawsuit over gender bias claims, and more recently, an employee rebellion over the company’s dismissal of AI ethics researcher Timnit Gebru.

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2020 brought a wave of discrimination and harassment allegations against major companies like Amazon, McDonald’s, and Pinterest. These are some of the year’s high-profile legal battles.

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  • The #BlackLivesMatter and #MeToo movements have exploded in recent years, shedding light on systemic racial and gender bias across American society, and in particular, within American workplaces.
  • In 2020, workers spoke publicly in increasing numbers, often by taking their employers to court over pay disparities, harassment and abuse, and toxic company cultures.
  • Major businesses including Google, Amazon, McDonald’s, Pinterest, and Johnson & Johnson faced new legal battles this year over allegations of racism and sexism.
  • Here are the highest-profile racial and gender discrimination, harassment, and sexual abuse lawsuits that were filed in 2020 against US companies and executives or that added new plaintiffs.
  • Visit Business Insider’s homepage for more stories.

American workplaces have long been hotbeds of discrimination and harassment, particularly for those who aren’t white, light-skinned, male, straight, single, young, able-bodied Americans.

Since 2000, 99% of Fortune 500 companies have paid settlements in at least one discrimination or sexual harassment lawsuit, according to a report from Good Jobs First, and that’s not including the cases without a public record or incidents victims didn’t report.

Even though there are laws against pay discrimination, US companies on average still pay women just $0.82 for every dollar they pay men, and pay women of color even less – and executives have made virtually no progress in closing wage gaps across the country since the early 2000s. In 2019, the Equal Employment Opportunity Commission received more than 7,500 sexual harassment complaints, and 72,000 complaints about racial, sex, age, religious and other types of discrimination.

In recent years, however, empowered in part by the #BlackLivesMatter and #MeToo movements, American workers are increasingly turning to the courts to hold their employers accountable for breaking civil rights laws and demand companies fix racist, sexist, ageist, ableist, and other biased pay practices and work environments.

Since 2018, companies like Google, Uber, Fox News, Riot Games, UPS, Coca-Cola, and Target have paid out multimillion-dollar settlements, and this year brought an even larger wave of high-profile cases.

Here are some of the major workplace discrimination, harassment, and retaliation lawsuits that workers filed against America’s largest companies in 2020, as well as cases where new plaintiffs joined.

Have you faced discrimination or harassment in your workplace? Contact this reporter using a non-work device via encrypted messaging app Signal at +1 503-319-3213, or by email at tsonnemaker@insider.com. We can keep sources anonymous.

Amazon was accused in lawsuits this year of having hiring practices and COVID-19 safety measures that were racially biased, as well as discriminating against a pregnant transgender man.

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  • February: Former hiring manager Lisa McCarrick sued Amazon after her manager allegedly asked her to stalk job applicants’ social media accounts to determine their race and gender, and then fired her when she complained. [NBC News]
  • October: Shaun Simmons, a transgender man, claimed in a lawsuit that he faced harassment and retaliation while working at Amazon and was demoted and denied a promotion after telling his manager he was pregnant. [NBC News]
  • November: Former Amazon warehouse employee Chris Smalls sued Amazon over its pandemic response, claiming it violated civil rights laws by failing to protect Black, Brown, and immigrant warehouse workers from COVID-19 while looking out for its mostly white managers. [Business Insider]
  • November: Denard Norton, a Black Amazon warehouse employee, sued the company accusing it of denying him promotions based on race and ignoring his repeated complaints about coworkers’ racist remarks. [NJ.com]

Bloomberg LP was hit by lawsuits accusing it of aiding and abetting Charlie Rose’s sexual harassment, as well as racial and gender bias in its pay and promotion practices.

Bloomberg Rose
Michael Bloomberg accepts the Governor’s Award from Charlie Rose at the 55th Annual New York Emmy Awards gala at the Marriott Marquis Times Square on April 1, 2012 in New York City.

  • June: Two women who had accused ex-CBS News host Charlie Rose of sexual harassment also sued Bloomberg for “aiding and abetting” Rose, who operated his independently owned studio out of Bloomberg’s New York headquarters. [The Hollywood Reporter]
  • August: Former Bloomberg reporter Nafeesa Syeed sued the company for pay and promotion practices that were allegedly “top-down” and systemically biased against women of color. [HR Dive]

The Chan Zuckerberg Initiative, a private philanthropy run by Priscilla Chan and Mark Zuckerberg, was sued by employees who claimed Black employees are “underpaid, undervalued, and marginalized.”

mark zuckerberg priscilla chan facebook
Priscilla Chan and Mark Zuckerberg attend the 2020 Breakthrough Prize Red Carpet at NASA Ames Research Center on November 03, 2019 in Mountain View, California.

  • November: ex-CZI employee Ray Holgado sued the nonprofit, claiming he was consistently denied promotion and growth opportunities, and was treated differently because of his race. [Business Insider]

Disney was sued in 2019 over gender-based pay discrimination, and multiple additional women joined the lawsuit this year.

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  • March: Chelsea Henke became the tenth Disney executive to join a lawsuit filed against the company in April 2019 that alleged “rampant gender pay discrimination.” [LA Times]

Facebook became the subject of a federal complaint alleging the company is biased against Black employees and candidates.

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Facebook co-founder and CEO Mark Zuckerberg testifies before the House Financial Services Committee in the Rayburn House Office Building on Capitol Hill October 23, 2019 in Washington, DC.

  • July: While not a formal lawsuit, a Facebook recruiter and two rejected job applicants filed a complaint with the Equal Employment Opportunity Commission accusing Facebook of “racial discrimination” against Black workers and applicants “in hiring, evaluations, promotions, and pay.” [Business Insider]

Fox News ex-host Ed Henry was accused of sexual assault, while hosts Tucker Carlson, Sean Hannity, Howard Kurtz, and Gianno Caldwell were all accused of harassment in a lawsuit by a former producer.

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Fox News ex-host Ed Henry, and hosts Tucker Carlson and Sean Hannity.

  • July: Former Fox News producer Jennifer Eckhart claimed in a lawsuit that ex-host Ed Henry violently raped her, and that Fox News knew and refused to discipline him, while former Fox guest Cathy Areu alleged she was sexually harassed by Sean Hannity, Tucker Carlson, Howard Kurtz, and Gianno Caldwell. [Business Insider]

Goldman Sachs allegedly covered up sexual misconduct by a top lawyer, and the woman who spoke publicly about it sued, claiming the company retaliated against her.

Goldman Sachs
A sign is displayed in the reception of Goldman Sachs in Sydney, Australia, May 18, 2016.

  • October: Former Goldman Sachs employee Marla Crawford claimed one of the bank’s top lawyers, Darrell Cafasso, sexually harassed a female subordinate and that Goldman covered up the allegations and retaliated against her for trying to speak publicly about it. [Business Insider]

Google ex-employees who sued the company in 2017 over gender pay disparities asked the court this year to expand their case to include 10,800 additional coworkers.

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Protesters at the 2018 Google walkout.

  • July: Four employees who sued Google in 2017, alleging women at the company are paid about $16,794 less than men in similar positions, asked the court to grant their lawsuit class action status, which would allow them to represent 10,800 other female Google employees. [Business Insider]

Hearst, the parent company of Esquire magazine, was sued by an ex-executive at Esquire who claimed she faced gender and age discrimination from her former boss.

GettyImages 1272616103 NEW YORK, NEW YORK - SEPTEMBER 14: A view of the Hearst Tower as the city continues Phase 4 of re-opening following restrictions imposed to slow the spread of coronavirus on September 14, 2020 in New York City. The fourth phase allows outdoor arts and entertainment, sporting events without fans and media production. (Photo by Alexi Rosenfeld/Getty Images)
Hearst Tower in New York City, NY.

  • September: Former Esquire ad executive Lauren Johnson, 52, sued Hearst, the magazine’s parent company, claiming she faced age and gender discrimination as well as retaliation for complaining, and that her boss Jack Essig “regularly mocked” older employees and female workers. [Business Insider]

Johnson & Johnson was sued by an ex-exec who claimed she faced “sexist, harassing and demeaning” behavior from male coworkers due to her gender and sexual orientation.

GettyImages 1269284050 Building of the company Johnson and Johnson in the Juan Carlos I Business Park in Madrid, it is an American multinational of medical, pharmaceutical and perfumery products, Spain. (Photo by Cristina Arias/Cover/Getty Images)
  • December: Gina Bilotti, a high-ranking 25-year veteran of Johnson & Johnson, sued the company, claiming she had endured years of discrimination, harassment, abuse, and retaliation on the basis of her gender and sexual orientation. [NJ.com]

Marriott was sued by a Black ex-employee who claimed he was fired in retaliation for complaining about racist behavior by coworkers.

FILE PHOTO: A guest arrives at the Marriott Marquis hotel in Times Square in New York City, U.S., November 8, 2017. REUTERS/Brendan McDermid
A guest arrives at the Marriott Marquis hotel in Times Square in New York

  • July: Kaseam Seales, formerly a bellhop at a Marriott hotel in New Jersey, claimed the company fired him in retaliation for complaining that his coworkers were exhibiting racist behavior toward him, and that they consistently gave more lucrative shifts to white bellhops. [Providence Journal]

McDonald’s is facing two racial discrimination lawsuits from Black franchisees as well as a class action sexual harassment suit, and could be on the hook for billions of dollars in damages.

GettyImages 1216832772 PHILADELPHIA, PA - JUNE 01: protesters march with three placards stating "BLACK Lives Matter" past a vandalized McDonald's restaurant on June 1, 2020 in Philadelphia, Pennsylvania. Demonstrations have erupted all across the country in response George Floyd's death in Minneapolis, Minnesota while in police custody a week ago. (Photo by Mark Makela/Getty Images)
  • April: McDonald’s employees filed a $500 million sexual harassment class-action lawsuit against the company, claiming they faced physical and verbal harassment from coworkers and customers. [Business Insider]
  • August: 52 Black ex-franchisees filed a $1 billion racial-discrimination lawsuit against McDonald’s, claiming the company sent them on “financial suicide missions” by pushing them to open stores in less profitable locations, eventually cutting the number of Black franchisees by 50% over the past two decades. [Business Insider]
  • October: In a separate class action suit, current Black franchisees said they faced a “pipeline of discrimination” from McDonald’s, which allegedly imposed “two standards” for white and black owners, giving white franchisees better opportunities while being more strict with Black owners on safety inspections. [Business Insider]

Morgan Stanley’s first diversity officer sued the bank over claims of racial discrimination and retaliating against employees who tried to make its culture more inclusive.

GettyImages 918882888 LOS ANGELES, CA - FEBRUARY 15: Morgan Stanley's director of the Urban Markets Group Marilyn Booker attends the NBA All-Star Bowling Classic at Lucky Strike LA Live on February 15, 2018 in Los Angeles, California. (Photo by Allen Berezovsky/Getty Images)
Marilyn Booker, Morgan Stanley’s former global diversity officer.

  • June: Marilyn Booker, Morgan Stanley’s first diversity officer, claimed in a racial-discrimination lawsuit that the bank retaliated against her and other Black female employees and eventually fired her for trying to make the bank’s workforce more diverse and inclusive. [The Washington Post]

The NCAA was sued by HBCU athletes who claimed the organization’s academic performance policies are biased against their schools.

GettyImages 624399734 MEMPHIS, TN - NOVEMBER 19: Troyce Manassa #4 of the Savannah State Tigers shoots a layup against the Memphis Tigers on November 19, 2016 at FedExForum in Memphis. Memphis defeated Savannah State 99-86. (Photo by Joe Murphy/Getty Images)
Troyce Manassa, a former member of Savannah State University’s basketball team, sued the NCAA over racial bias.

  • December: Athletes from Historically Black Colleges and Universities (HBCUs) sued the National Collegiate Athletic Association, college sports’ governing body, claiming its academic performance standards — which are ostensibly meant to improve graduation rates — simply ended up discriminating against their schools, and thus disproportionately impacted Black student athletes. [NPR]

Oracle was sued in 2017 by female employees over gender pay disparities, and a court earlier this year opened the class action to more than 4,000 other current and former employees.

larry ellison oracle
  • May: Three female Oracle employees sued the company in 2017, claiming it paid women less than men, citing an economists’ study that found the pay gap averaged $13,000 per year. This year, a court granted the case class action status, opening the door for more than 4,000 current and former employees to join the suit. [The Mercury News]

Pinterest recently paid a former executive $22.5 million to settle a gender discrimination lawsuit and is facing another from shareholders over alleged racial and gender discrimination.

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A woman walks past sign at the headquarters of social network Pinterest in the South of Market (SoMa) neighborhood of San Francisco, California, October 13, 2017.

  • August: Ex-Pinterest COO Françoise Brougher filed a gender-bias lawsuit against the company, claiming she faced pay discrimination and sexist behavior from other executives. Pinterest paid $22.5 million in December to settle the suit. [Business Insider]
  • December: Following Brougher’s lawsuit and explosive allegations by dozens of current and former employees, Pinterest shareholders sued the company, accusing it of harming investors by creating and perpetuating a culture of racial and sex discrimination. [Business Insider]

Uber was sued by a driver who claimed the company’s five-star rating system is racially biased.

A protester gestures as Uber and Lyft drivers drive through Beverly Hills on their way to demonstrate outside the recently purchased $72 million home of Uber co-founder Garrett Camp, to protest the first day of an "IPO cash out" in Beverly Hills, California on November 6, 2019. - The drivers claim that "executives are poised to cash out their IPO billions while at the same time continuing to drive down worker pay, leaving many drivers sleeping in their cars and unable to provide for their families". (Photo by Mark RALSTON / AFP) (Photo by MARK RALSTON/AFP via Getty Images)
An Uber driver protests outside the home of Uber co-founder Garrett Camp.

  • October: Thomas Liu, a former Uber driver, sued the company after it kicked him off the platform because his driver rating had fallen below a 4.6 out of 5. He claimed Uber’s use of the system amounted to “intentional race discrimination” because of the “widely recognized” notion that racism often slips into customers’ evaluations of workers. [Business Insider]

Warner Bros. was sued by a former executive who alleged she faced gender discrimination and harassment from men in the company’s senior ranks, which she called an “old boys club.”

GettyImages 136247596 The Warner Bros logo outside the Warner Bros Studio lot in Burbank, California, 30th September 2008. (Photo by Amy T. Zielinski/Getty Images)
  • October: An ex-Warner Bros. executive sued the company over gender discrimination, claiming she was fired in retaliation for raising complaints about sexist behavior and harassment by male executives. [Deadline]

WeWork was hit with at least three lawsuits from former employees alleging harassment, discrimination, and that a manager intimidated an employee by, among other things, bringing a crossbow and knives to work.

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  • July: WeWork became the subject of three new gender and race discrimination and harassment lawsuits this year, including from an employee who claimed her boss brought a crossbow and knives to work, implied he had connections to the Mafia, and made unwanted sexual advances. Two Black employees also said they were paid less than white coworkers and faced retaliation for raising issues, with one also saying she was sexually harassed. [Business Insider]

Are there other high-profile discrimination or harassment lawsuits that should be added to this list? Contact this reporter using a non-work device via encrypted messaging app Signal at +1 503-319-3213, or by email at tsonnemaker@insider.com.

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