AT&T Settles Equal Pay Violation

AT&T agrees to a significant settlement for violating the Diane B. Allen Equal Pay Act.

The New Jersey Attorney General, Matthew J. Platkin, and the Division on Civil Rights (DCR) have reached a groundbreaking settlement with telecommunications giant AT&T, resolving allegations of pay discrimination under the Diane B. Allen Equal Pay Act. This landmark decision mandates substantial monetary compensation and strategic reforms to uphold equal pay standards.

Attorney General Platkin and DCR confirmed a Consent Decree with AT&T, addressing a probable cause finding of unequal pay. A female employee, comparably qualified to her male colleague, was consistently paid less, a clear violation of New Jersey's stringent equal pay laws.

The Consent Decree entails comprehensive measures:

AT&T will pay $162,500 to the victim, alongside a salary increase exceeding $10,000.
A mandated Compensation Study within AT&T's "Threat Analytics" unit.
Development of an Equal Pay Act policy for New Jersey employees, ensuring a formal process for addressing pay disparities.
Revision of current policies for alignment with the New Jersey Law Against Discrimination and the Equal Pay Act.
Mandatory training on equal pay policies for management and HR personnel.
Regular reporting to DCR on any pay disparity complaints.
A $10,000 penalty to DCR for administrative and investigation costs.

These stipulations are set to rectify the current case and prevent future discrepancies, signaling a stern stance against pay discrimination.

Attorney General Platkin emphasized, "Our state takes alleged violations of the Equal Pay Act seriously, and will not stand idly by when we learn of pay discrimination." This sentiment was echoed by DCR Director Sundeep Iyer, who highlighted the strength of New Jersey's Equal Pay Act in addressing systemic pay disparities, particularly affecting women and people of color.

The Diane P. Allen Equal Pay Act, enacted in 2018 under Governor Murphy, is among the nation's most robust equal pay statutes. Unlike federal law, which limits to gender-based disparities and equal work, New Jersey's law covers a broader spectrum of protected characteristics and demands equal pay for "substantially similar" work.

This settlement is a significant stride in New Jersey's ongoing efforts to enforce fair pay practices. It not only compensates the affected employee but also sets a precedent for corporate accountability in upholding equality in the workplace. For more information or to report violations, visit NJ DCR's Official Website or call 1-833-NJDCR4U.