U.S. Department of Labor Reaches $5 Million Settlement With Intel Corp. To Resolve Pay Discrimination Allegations

SAN FRANCISCO, CA – The U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) has reached a settlement with Intel Corp. to resolve allegations of systemic pay discrimination against female, African American and Hispanic American employees at its facilities in Arizona, California and Oregon. Under the terms of the agreement, Intel Corp. agreed to pay $3,500,000 in back pay and interest. Intel Corp. also agreed to allocate at least $1,500,000 in pay-equity adjustments for the next five years for U.S. employees in engineering positions as part of its annual pay equity analysis.

“Women, African Americans, and Hispanic Americans earned back pay and interest in this case,” said Office of Federal Contract Compliance Programs Director Craig Leen.

“Intel Corp. is one of the first technology companies to take multiple proactive steps to ensure pay equity,” said Office of Federal Contract Compliance Programs Regional Director Jane Suhr, in San Francisco, California.  

Intel Corp. volunteered to enter into an Early Resolution Agreement and agreed to take proactive steps to enhance its compliance with Executive Order 11246 in the compensation of all of its establishments to ensure non-discriminatory pay practices.

In November 2018, OFCCP launched an effort to resolve supply and service compliance evaluations at the earliest stage possible with corporate-wide compliance and issued a directive establishing Early Resolution Procedures (ERP). These procedures allow OFCCP and contractors with multiple establishments to cooperatively implement corporate-wide compliance with OFCCP’s regulatory requirements and efficiently resolve issues. In turn, contractors are exempt from future evaluations for five years.

Intel Corp. is an American multinational corporation and technology company headquartered in Santa Clara, California. Intel Corp. provides services and products to federal agencies, including NASA.  

If you think you may be someone eligible for back pay from this settlement, or may know someone who is, please visit the OFCCP Class Member Locator at: https://www.dol.gov/ofccp/CML. There you will find information about this and other OFCCP settlements.

In addition to Executive Order 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974.  These laws, as amended, make it illegal for contractors and subcontractors doing business with the federal government to discriminate in employment because of race, color, religion, sex, sexual orientation, gender identity, national origin, disability, or status as a protected veteran. In addition, contractors and subcontractors are prohibited from discriminating against applicants or employees because they have inquired about, discussed, or disclosed their compensation or the compensation of others subject to certain limitations.  For more information, please call OFCCP's toll-free helpline at 800-397-6251 or visit https://www.dol.gov/ofccp/.

The mission of the Department of Labor is to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.