Dell to Pay $9M for Gender Discrimination

August 18, 2009 ( - Dell Inc. has agreed to settle a federal gender discrimination lawsuit for $9.1 million.

The Associated Press reports that under the terms of the settlement agreement, Dell said $5.6 million will be used for payments to class members and for litigation costs. The class is defined in a court filing as all women employed by Dell in the U.S. for at least one day in a C1 through D3 level position between February 14, 2007, and December 31, 2008. Dell said employees who filed discrimination claims with state or federal agencies will be excluded, according to the AP.

The remaining $3.5 million will be used to raise current C1 to D3-level female employees’ base pay to match the pay of their male counterparts, after Dell conducts a review of salaries. The computer maker also said it will also examine some of its employment practices and work with outside experts to recommend improvements.

Dell did not admit any wrongdoing.

The discrimination lawsuit was filed last October by four former human resources managers at Dell, who accused the company of having discriminatory policies regarding pay, job placement, promotion, and termination (see Former Dell Execs File Gender and Age Discrimination Suit ) .