Dell settles federal discrimination suit for $9.1M

July 25, 2009

(AP) -- Dell Inc. said Friday it has agreed to settle a federal gender-discrimination class action lawsuit brought by former employees for $9.1 million.

Under the terms of the settlement agreement, Dell said $5.6 million will be used for payments to class members and for litigation costs.

According to a court filing, the class is defined as all women employed by Dell in the U.S. for at least one day in a C1 through D3 level position - job-level classifications used inside Dell - between Feb. 14, 2007, and Dec. 31, 2008. Employees who filed discrimination claims with state or federal agencies will be excluded.

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. Dell said it will conduct a review of salaries first.

The Round Rock-based computer maker said it will also examine some of its employment practices and work with outside experts to recommend improvements.

The terms were laid out in a joint statement issued by Dell and the former employees. Dell did not admit any wrongdoing by agreeing to a settlement.

Jill Hubley, a former human resources manager at Dell, filed the discrimination lawsuit last October in U.S. District Court in Austin. Hubley said Dell showed a pattern of gender discrimination in the way it compensated and promoted female employees. A second former manager, Laura Guenther, later joined the suit.

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