Intel has agreed to pay $5 million to compensate employees in a settlement announced Tuesday with the U.S. Department of Labor.
The chipmaker, Oregon’s largest corporate employer, had been facing allegations of systemic pay discrimination against women, African Americans and Hispanics, according to the department. Authorities said the alleged discrimination took place at Intel sites in Oregon, California and Arizona.
Intel agreed to $3.5 million in back pay and interest, plus $1.5 million in pay adjustments over the next five years for engineers working in the U.S.
Though its headquarters are in Silicon Valley, Intel’s largest and most advanced operations are in Oregon where the company employs 20,000.