Penn State will pay out $703,742 in back wages to 65 employees to resolve alleged gender pay discrimination against female employees, according to a U.S. Department of Labor press release.

Based on a review conducted by the department’s Office of Federal Contract Compliance Programs, Penn State allegedly paid 65 female employees less than men holding similar positions in facilities operations and maintenance, extension education, and senior administration jobs.

“The Office of Federal Contract Compliance Programs ensures that federal contractors provide workplaces free from discrimination. Penn State must make certain its employment practices comply with all federal law, including those that seek to eliminate gender-based barriers to equal employment,” Office of Federal Contract Compliance Program Acting Director Michele Hodge said.

Penn State, in addition to compensating the back pay, agreed to take steps to ensure its compensation practices and policies are free from discrimination. 

In it’s own release, Penn State said it cooperated fully with the Department of Labor’s investigation.

“The agreement notes unintentional pay discrepancies for 65 female employees working at University Park,” Suzanne Adair, Penn State associate vice president for Equal Opportunity and Access, said. Adair led the University’s participation in the audit.

“While the number of affected employees was small relative to the overall campus population, the University takes such matters seriously and worked diligently with the government to reach a resolution that fairly compensated the affected women. We appreciate the government’s efforts and are pleased that the audit identified the pay anomalies so that corrective action could be taken.”

“Penn State actively pursues pay equity and, to this end, recently invested $60 million through the Compensation Modernization Initiative to better align staff salaries with new, market-informed salary grades and equitable pay practices,” the release read. “Among other things, the Initiative has resulted in a compensation structure that better aligns staff salaries with new, market-informed salary grades.  Penn State is committed to reviewing pay equity under the new structure and, where warranted, to taking remedial action.”