Dell settles discrimination lawsuit for $9.1M

Dell Inc. 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, $5.6 million will be used for payments to plaintiffs and for litigation costs, Dell officials said.

Round Rock-based Dell (Nasdaq: DELL), the No. 2 computer maker in the world, employs 16,000 local workers. The company plans to reconsider its employment practices and enlist outside experts to recommend improvements, officials said.

According to a court filing, a portion of the money will go to women employed by Dell in the U.S. for at least one day in certain job classifications between Feb. 14, 2007, and Dec. 31, 2008 as back pay.

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

The suit was filed last October by former Dell human resources manager Jill Hubley, who claimed 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, The Associated Press reported.

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