Penn State University agrees to pay $703,742 to settle wage discrimination claims, raising questions about gender pay equity in higher education.
At a Glance
- Penn State to pay $703,742 in back wages and interest to 65 female employees
- U.S. Department of Labor found women were paid less than men in similar jobs since 2020
- Affected roles include facilities, extension education, senior administration, and some faculty positions
- Penn State did not admit fault but agreed to ensure non-discriminatory compensation practices
Penn State Settles Wage Discrimination Claim
Pennsylvania State University has agreed to pay $703,742 in back wages and interest to settle allegations of gender-based wage discrimination. The settlement comes after a compliance review by the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) revealed that since July 1, 2020, Penn State had been paying 65 female employees less than their male counterparts in similar positions.
The affected positions span various departments and roles within the university, including facilities operations and maintenance, extension education, senior administration, and teaching positions in the College of Agricultural Sciences and the Donald P. Bellisario College of Communications. The individual payouts to the impacted women range from $2,432 to $47,241, highlighting the significance of the wage disparities uncovered.
.@Penn_State will pay $703K in back wages and interest to resolve alleged gender-based pay discrimination.https://t.co/NrWXsqwm9C pic.twitter.com/NiTA9zkv0C
— U.S. Department of Labor (@USDOL) September 18, 2024
University’s Response and Commitment to Equal Pay
While Penn State did not admit to any violations, the university has taken steps to address the issue and prevent future discrepancies. Suzanne Adair, Penn State’s vice president for equal opportunity and access, addressed the situation, stating that the university worked diligently with the government to reach a fair resolution.
“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,” said Adair. “We appreciate the government’s efforts and are pleased that the audit identified the pay anomalies so that corrective action could be taken.”
Penn State has emphasized its commitment to pay equity, citing recent investments in its compensation structure. The university stated, “Penn State actively pursues pay equity and, to this end, recently invested $60 million through the Compensation Modernization Initiative to better align staff salaries with new, market-informed salary grades and equitable pay practices.”
Federal Oversight and Implications
The settlement highlights the role of federal oversight in ensuring equal employment opportunities. Samuel Maiden, the mid-Atlantic regional director for the OFCCP, emphasized the responsibilities of federal contractors: “Employers that hold federal contracts must provide all employees with equal employment opportunities and audit their employment processes to make certain no barriers to equal employment exist.”
“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,” remarked Office of Federal Contract Compliance Program Acting Director Michele Hodge.
As part of the settlement, Penn State has agreed to ensure its compensation and pay practices are free from discrimination moving forward. The university must notify the 65 affected women within a week of the agreement’s effective date, and issue payments within 15 days of receiving signed documents from the employees.
Broader Implications for Higher Education
This case serves as a reminder of the ongoing challenges in achieving gender pay equity, particularly in higher education institutions. As federal contractors, universities are subject to strict equal employment opportunity regulations. The Penn State settlement may prompt other institutions to review their compensation practices to ensure compliance and fairness.
While Penn State’s commitment to addressing the issue is commendable, the incident underscores the importance of proactive measures to prevent wage discrimination. As the dialogue around equal pay continues, this case may serve as a catalyst for broader discussions and reforms within the higher education sector and beyond.
