The U.S. Labor Department accused Oracle on Wednesday of wage discrimination in favor of white men and of hiring discrimination in favor of Asian Americans, in a lawsuit that could cut off federal contract dollars to the Redwood City technology giant.

A review of employment practices since at least January 2014 at Oracle headquarters, which employs more than 7,000 of the company’s 45,000 full-time U.S. workers, found that white men were paid more than women, African Americans and Asians with similar duties and qualifications, the department said.

During the same period, the department said, Oracle has favored Asian applicants, particularly those from India, over whites, African Americans and Latinos in recruiting and hiring for product development and technical positions. The company offered “referral bonuses that encouraged its heavily Asian workforce to recruit other Asians,” the lawsuit said.

Oracle has also refused to turn over some company records on pay, hiring and employee complaints of discrimination, said the lawsuit, filed with the Labor Department’s Office of Administrative Law Judges on President Obama’s next-to-last full day in office. Attorney Janet Herold said the department based its findings of discrimination on other Oracle data and interviews with employees and job applicants.

The suit seeks damages for the affected workers and job applicants, and cancellation of Oracle’s federal contracts until the company complies with laws against discrimination.

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“Federal contractors are required to comply with all applicable antidiscrimination laws,” Thomas Dowd, acting director of the department’s Office of Federal Contract Compliance, said in a statement.

The suit is “politically motivated, based on false allegations, and wholly without merit,” Oracle said. “Oracle values diversity and inclusion, and is a responsible equal opportunity and affirmative action employer. Our hiring and pay decisions are nondiscriminatory and made based on legitimate business factors including experience and merit.”

Asked about its claim of political motivation, Oracle declined further comment. Co-CEO Safra Catz joined Donald Trump’s transition team last month, while remaining with the company, and has endorsed the president-elect’s plans to reduce taxes and business regulations.

Separately, Oracle agreed in April to donate $200 million in funds and technology to Obama’s program to subsidize computer science instruction in public schools.

The Labor Department filed suit against Palantir Technologies of Palo Alto in September, accusing the company of hiring discrimination against Asians. The company has denied discriminating. Palantir was co-founded by Peter Thiel, an adviser to Trump.

The Labor Department said it notified Oracle of its findings of discrimination in March and tried to negotiate a solution before filing the suit.

Bob Egelko is a San Francisco Chronicle staff writer. Email: begelko@sfchronicle.com Twitter: @egelko