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IBM to Pay $350,000 Over Pay Discrimination

The company discriminated against 115 female employees in project manager positions.

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WASHINGTON – The U.S. Department of Labor and IBM US Public Service GBS yesterday announced an agreement to resolve allegations of gender-based pay discrimination within the federal contractor’s Functional Affirmative Action Program (FAAP) unit.

A routine compliance evaluation by the department’s Office of Federal Contract Compliance Programs in June 2018 found that – as of Dec. 31, 2017 – IBM discriminated against 115 female employees in project manager positions and paid them less than their male counterparts in similar positions.

OFCCP found the company’s alleged actions violated Executive Order 11246, which prohibits gender-based discrimination by federal contractors. IBM has agreed to pay $350,000 in back pay and interest to the affected female employees.

“Federal contractors must ensure their pay practices do not discriminate for any reason,” said Office of Federal Contract Compliance Programs Acting Regional Director Michele Hodge, in Philadelphia.

Headquartered in Armonk, New York, IBM has operations in more than 170 countries. The company produces and sells computer hardware, middleware and software, and provides hosting and consulting services in areas ranging from mainframe computers to nanotechnology.

“Contractors must be able to articulate the specific factors they include in their pay-setting decisions at the time they actually make the pay decisions,” said Philadelphia Regional Solicitor Oscar L. Hampton III in Philadelphia. “This practice ensures that pay decisions are being based upon neutral criteria.”

If you think you may be a class member employed by IBM during the investigative period, use OFCCP’s Class Member Locator to learn more about this and other settlements. Learn more about OFCCP, or call 800-397-6251.

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