Intel Agrees to $5M Settlement Over Discrimination Allegations

October 18, 2019

According to the Labor Department, a $5 million settlement has been reached with chip maker Intel Corp. over allegations of pay discrimination against its female, African American and Hispanic employees.

As part of the agreement, Intel will pay $3.5 million in back wages and interest. It is also allocating at least $1.5 million in pay adjustments over the next five years for U.S. workers in engineering positions.

Intel said Tuesday that it is pleased to have resolved the matter and said it achieved global pay equality in January.

Like many other tech companies, Intel employs mostly white and Asian men, especially in technical positions such as engineering. According to its most recent diversity report , 27% of its employees are women, 9% are Hispanic and less than 5% African American.

Across the board, studies show women are frequently paid less than men for performing the same job. While the Equal Pay Act and Title VII of the Civil Rights Act are designed to prohibit such discrimination, pay disparity remains a problem for many Florida women, in part because the laws themselves include a number of procedural hurdles that must be cleared before an equal pay claim ever reaches a trial court.

Employees are supposed to be free from wage discrimination based on race, color, religion, gender, age, national origin, or disability. These rights are protected by the Equal Pay Act of 1963, and Title VII of the Civil Rights Act of 1964. Despite all these protections, there are many studies that document the significant wage disparities between men and women, and between white people and people of color. Sadly, this also means that the pay gap is the worst for women of color.

The Equal Pay Act of 1963 and Title VII of the Civil Rights Act of 1964 prohibit discrimination on the basis of gender, and require that men and women be paid equally for equal work. There are very important differences in these laws, which is why you need to work with an experienced and knowledgeable employment discrimination attorney who knows the differences between the two, and can advise you on the best course of action for you lawsuit.

In order to prove a case of race or gender-based wage discrimination an employee must show that an employer treats workers differently based on race, color, gender, or national origin.

Race-based wage discrimination is prohibited by Title VII of the Civil Rights Act of 1964, which states it is illegal for an employer to discriminate based on race. Race-based discrimination can be committed against an employee, or even someone who is applying for a job. Some examples of race-based discrimination includes:

• Pay rate
• The decision whether or not to hire an applicant
• Title
• Promotion
• Benefits

It is illegal for an employer to make an employment decision with regard to any of these terms of employment based on race, gender, color, or national origin. Race and gender-based discrimination does not necessarily have to be overt. An employer may have committed race or gender-based wage discrimination by implementing seemingly-neutral policies that disproportionately affect people of a particular race or gender.

A successful race or gender-based discrimination claim can include the following compensation:

• Back pay
• Lost wages
• out-of-pocket expenses
• Court costs and attorneys’ fees
• Damages for emotional and mental anguish

Punitive damages, which are given out to punish your employer for violating the law. These are only awarded in situations where the employer acted intentionally or in a particularly egregious way.

With that said, many people facing discrimination in the workplace are scared to come forward out of fear of being retaliated against by their employer. Our Florida Discrimination Attorneys at Whittel & Melton want you to know that the law strictly forbids retaliation against employees for reporting illegal discrimination. If you have complained of discrimination or made a report to HR, and after you said something, your employer demoted or terminated you, or diminished your wages and/or benefits, you may very well have a claim for retaliation. To prove a claim of retaliation, you must prove that you suffered an adverse employment action because you complained about or reported discrimination.

If you believe you have been a victim of gender or race based discrimination, or have questions about a potential claim, let us help you. Our Florida Discrimination Lawyers at Whittel & Melton are ready to asssist you in any way we can. We can answer any questions you have or start filing your claim.