News, Culture & Society

Family Dollar to pay $45M in gender bias lawsuit

  • The lawsuit alleges wrongdoing by the store from July 2002 to November 2017 
  • In the settlement, 49 female managers said there was a pattern of lower wages
  • Family Dollar denied the pay discrepancy between genders but agreed to settle 
  • The discount store said it would hire experts to help with starting salaries 

Family Dollar has agreed to pay $45million to settle a gender bias lawsuit that dates 16 years ago.

The discount retailer was accused by more than 37,000 female managers of paying their male counterparts more for doing the same job. 

The lawsuit claimed this was a violation of Title VII of the Civil Rights Act of 1964 and the Equal Pay Act of 1963. 

Family Dollar has reached a settlement with female managers to pay $45million for alleged gender pay discrimination. The lawsuit was filed by 49 female managers with the company who said there was an almost 16-year period of differing pay between genders 

Family Dollar originally denied the claims that they paid their female managers less but have since agreed to a settlement with the managers, the Charlotte Observer reported. 

According to the settlement, 49 female managers filed Equal Employment Opportunity Commission charges against the store alleging a pattern of discriminatory wages towards women.  

The claims from the employees go from July 2002 to November 2017, an almost 16-year period of alleged lower wages. 

US District Judge Max Cogburn signed off on the settlement on March 14 to compensate the affected managers for the pay they did not receive. 

Family Dollar denied any wrongdoing, saying that it ‘has treated all employees fairly with regard to salaries.’

But since the settlement, the store has agreed in addition to the $45million payout to work with experts on its starting salaries for manager to insure no further issues. 

The discount retailer’s headquarters are in Matthews, North Carolina, with over 8,000 stores throughout the country.