Penn State agrees to pay 65 employees in back wages, here’s why

PHILADELPHIA, Pa. (WTAJ) — Penn State University will be paying 65 employees over $703,000 in back pay after they entered into an agreement with the U.S. Department of Labor.

According to the department, 65 female employees were found to have been underpaid since at least July 2020 in what they alleged was “gender pay discrimination.”

The realization came during a compliance review by the department’s Office of Federal Contract Compliance Programs (OFCCP). They found that male employees at the university were being paid more compared to female employees who held similar jobs.

The positions included facilities operations and maintenance, extension education and senior administration jobs. Some were also in research professor roles and teaching professor roles.

Penn State was ultimately found to have violated an executive order prohibiting federal contractors from discriminating in employment. In the conciliation, the university also agreed to “take steps to make sure its compensation practices and policies are free from discrimination,” according to the department.

“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,” OFCCP Acting Director Michele Hodge said.

The department noted that Penn State in 2024 received over $178 million in payments from federal contracts with agencies such as the CDC, NASA, the Nuclear Regulatory Commission and the departments of Defense and Agriculture.

For the latest news, weather, sports, and streaming video, head to WETM - MyTwinTiers.com.