Penn State to pay $700,000 for gender pay discrimination

Pennsylvania State University has agreed to pay over $700,000 to settle allegations of gender pay discrimination against female employees. The United States Department of Labor announced that the university will pay $703,742 in back wages and interest as part of a conciliation agreement. A compliance review revealed that since July 1, 2020, 65 women in various positions, including facilities operations and senior administration, were paid less than their male counterparts. The Office of Federal Contract Compliance Programs, which oversees compliance with federal employment laws, found that Penn State's practices violated Executive Order 11246. This order prohibits discrimination based on sex, among other factors, for federal contractors. The university acknowledged the pay discrepancies as "unintentional" and emphasized its commitment to addressing pay equity. Suzanne Adair, the associate vice president for Equal Opportunity and Access at Penn State, stated that while the number of affected employees was small compared to the overall campus population, the university took the matter seriously. The university worked closely with the government to resolve the issue and ensure fair compensation for the affected women. This case highlights ongoing challenges related to gender pay equity, even decades after the introduction of the Equal Pay Act. The settlement serves as a reminder of the importance of compliance with federal laws aimed at eliminating gender-based discrimination in the workplace.