Professional Service Agreement

Dell EMC Will Pay $2.9M to Resolve Pay Discrimination Charges

May 21, 2018

The U.S. Department of Labor has entered a settlement with Dell EMC under which the company will pay $2.9 million-plus in back wages to remedy alleged pay discrimination violations at four Dell EMC locations in California and North Carolina. The Hopkinton, Massachusetts-headquartered company is a federal contractor that provides computing, networking, and data storage solutions.

After routine compliance evaluations, the Office of Federal Contract Compliance Programs (OFCCP) found that beginning in 2014, Dell EMC systemically discriminated against females in engineering, marketing, and sales roles at its Pleasanton, California, facility, and females in engineering and manufacturing roles at its Santa Clara, California, facility. OFCCP investigators also determined that Dell EMC paid women and African Americans in engineering roles at its Durham, North Carolina, facility less than white males. Further, the company paid African-American females in manufacturing roles in Apex, North Carolina, less than white males, according to the OFCCP.

Under the conciliation agreement, Dell EMC denies liability but nonetheless will pay more than $2.9 million in back pay and interest to the affected class members. The company will also make pay adjustments and take steps to ensure its pay practices meet legal requirements.