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Intel to Adjust Salaries as Part of $5M Pay Bias Settlement (2)

Oct. 16, 2019, 1:45 PMUpdated: Oct. 16, 2019, 7:40 PM

Intel Corp. will pay $5 million to settle pay bias allegations at locations in California, Oregon, and Arizona, according to a Labor Department statement.

The DOL’s Office of Federal Contract Compliance Programs claims the Santa Clara, Calif.-based technology company systemically discriminated against women and minorities in pay. Thirty percent of the settlement dollars will be dedicated to adjusting salaries for Intel engineers over the next five years, according to the statement. The settlement document itself wasn’t immediately available.

“Intel Corp. is one of the first technology companies to take multiple proactive steps to ensure pay equity,” OFCCP Regional Director for the Pacific Region Jane Suhr said in the statement.

The agency confirmed the settlement was reached in fiscal year 2019, a record year for dollar amounts obtained by the agency. With this settlement, the OFCCP collected at least $32 million from all settlements in fiscal year 2019. More settlements could become public in the coming weeks.

“Intel is committed to increasing the diversity of our workforce and ensuring that Intel is a place where everyone has an equal opportunity to succeed, and we’re pleased to have resolved this matter,” a company spokesperson said in an email. “As a result of the analysis we conducted last year, we announced we achieved pay equity globally in January 2019.”

As part of this settlement, Intel also agreed to regularly monitor pay practices at all facilities nationwide for non-discrimination compliance, in exchange for five years free of a random OFCCP audit. The agency regularly and randomly audits federal contractors, reaching about 2% of all locations annually. Bank of America, Goldman Sachs, Dell Technologies, and Performance Food Group are among the companies that have reached similar agreements with the agency.

(Updated to reflect additional reporting.)

To contact the reporter on this story: Paige Smith in Washington at psmith@bloomberglaw.com

To contact the editors responsible for this story: Martha Mueller Neff at mmuellerneff@bloomberglaw.com; Jay-Anne B. Casuga at jcasuga@bloomberglaw.com

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