Archived News Release — Caution: Information may be out of date.

U.S. DEPARTMENT OF LABOR

ESA Press Release: Texaco to Pay $3.1 Million to Women Professionals and Executives in Largest Pay Discrimination Settlement [01/06/1999]

For more information call: 202-219-8211

Texaco will pay $3.1 million to 186 women who worked at corporate offices across the country, in the largest "glass ceiling" settlement ever reached with the U.S. Department of Labor. The money will go to women in professional and executive positions who were consistently paid less than their male counterparts in similar positions.

"Our glass ceiling review found that women in mid-level positions throughout the company were underpaid as a matter of course for years," Labor Secretary Alexis M. Herman said. "This should be a wake up call for all federal contractors to voluntarily audit themselves to resolve these issues. They should not wait to be scheduled for a review by the Labor Department."

Texaco was cited for inconsistently applying its compensation policies to women. The $3.1 million includes $2.2 million in back pay and interest, $816,000 in raises already given and another $84,000 in salary increases.

"We urge other companies to work with the Department of Labor as Texaco did to ensure that there is no discrimination in pay or advancement," said Assistant Secretary Bernard E. Anderson, who heads the Employment Standards Administration. Anderson noted that Texaco's proactive cooperation with Labor officials allowed the Office of Federal Contract Compliance Programs (OFCCP) to reach the settlement agreement signed yesterday and to avoid lengthy litigation.

OFCCP, part of the Employment Standards Administration, enforces equal opportunity requirements of companies that have contracts with the federal government. Texaco has a contract with the Department of Defense to supply petroleum products.

Shirley J. Wilcher, head of the Office of Federal Contract Compliance Programs, said the agreement with Texaco is the largest pay equity case to date. In addition to the financial settlement, Texaco will set standard policies for establishing initial salaries and promotional raises.

"The old biases are still at work against women," Wilcher said, "even as many of them attain high-level positions. We will continue to review corporate policies and practices to ensure that women are paid equally with men who have similar responsibilities."

Previous major "glass ceiling" audits included CoresStates Bank of Philadelphia, Pa. which settled for $1.5 million in April, 1998; Fairfax Hospital of Fairfax, Virginia for $600,000 in September, 1993; R.R. Donnelley, of Chicago, Ill., $425,000 September, 1998; and Allison Engine Company of Indianapolis, Ind. in March, 1998 for $499,999.

Archived News Release — Caution: Information may be out of date.