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Penn State agrees to pay more than $700,000 after gender pay discrimination allegations

Wage gap still exists 60 years after Equal Pay Act
Wage gap still exists 60 years after Equal Pay Act 02:46

PITTSBURGH (KDKA) — Pennsylvania State University has agreed to pay more than $700,000 in back wages and interest to resolve alleged gender pay discrimination against female employees.

In a news release on Wednesday, the United States Department of Labor said Penn State will pay $703,742 and enter into a conciliation agreement to remedy the allegations. 

The Department of Labor said a compliance review found that since July 1, 2020, Penn State paid 65 women employees less than men holding similar positions in facilities operations and maintenance, extension education, and senior administration jobs. 

"The Office of Federal Contract Compliance Programs ensures that federal contractors provide workplaces free from discrimination. Penn State must make certain its employment practices comply with all federal law, including those that seek to eliminate gender-based barriers to equal employment," said Michele Hodge, acting director of the Office of Federal Contract Compliance Program, in the news release. 

The Department of Labor said Penn State's actions violated Executive Order 11246, which "prohibits federal contractors from discriminating in employment based on race, color, religion, sex, sexual orientation, gender identity or national origin."

According to statecollege.com, Penn State described the discrepancies as "unintentional" before adding that the university takes the issue of pay equity seriously.

"While the number of affected employees was small relative to the overall campus population, the University takes such matters seriously and worked diligently with the government to reach a resolution that fairly compensated the affected women," Suzanne Adair, Penn State's associate vice president for Equal Opportunity and Access, told statecollege.com. "We appreciate the government's efforts and are pleased that the audit identified the pay anomalies so that corrective action could be taken."

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