Dive Brief:
- Computing giant Dell EMC, a Dell subsidiary, has agreed to pay $2.9 million to resolve U.S. Department of Labor allegations of pay inequality at four locations in California and North Carolina.
- DOL said that its Office of Federal Contract Compliance Programs (OFCCP), following a routine compliance evaluation, determined that Dell EMC systemically discriminated against women in engineering, manufacturing, marketing and sales roles. OFCCP investigators also determined that, for some roles, it paid women and African Americans less than white males.
- The company denies liability, DOL said, but will make the back pay and interest payment to the affected class members and make pay adjustments. The settlement affects nearly 500 workers, according to Law360.
Dive Insight:
High-profile companies — especially those in the tech sector — continue to make headlines when it comes to pay equity. Some, like Google, have been accused of discrimination. In a situation similar to that involving Dell EMC, OFCCP said it found said it found pay disparities based on gender and race. It sued Google, alleging that it failed to release enough records, and that litigation is ongoing.
Oracle, was hit with a lawsuit by former female workers who sued the company for pay discrimination, alleging that Oracle paid male employees more than women who performed the same or similar work under the same working conditions.
Others, however, are making headlines for their attempts to voluntarily correct disparities. Salesforce, for example, said it conducted an equal pay assessment in 2015 and in 2017 and found that pay for both genders needed adjusting. To do so, the company spent $6 million and pledged to continue monitoring the situation.
Employers who want to undertake similar efforts may want to consider the role that data analysis can play. Experts also suggest that employers conduct any pay audits with the help an attorney to ensure the information is privileged and not discoverable in litigation.
