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Family Dollar to Pay $45 Million Settlement

A decade-old class action suit against Family Dollar Stores Inc. has finally been resolved. Forty-nine female store managers sued the company, on behalf of a class, alleging that male managers were paid more money for performing the same job. Corporate policies and high-level management were allegedly how the pay bias was perpetrated.

A district court judge in North Carolina has approved the settlement. The agreement requires that Family Dollar work to create “significant prospective programmatic remedies aimed at providing adjustments to Family Dollar’s pay practices.” Industry and psychological experts must validate the remedies used to correct the pay disparities. Any exceptions to the certified revised practices must be looked at on an individual basis by a designated representative or team.

Sixteen million of the funds will be used to pay attorneys’ fees and costs. The remainder of the settlement amount will be split among the approximately 37,000 female store managers who were employed between 2002 and the present. The class representatives will receive increased amounts of the settlement monies. The case was resolved through a double-blind mediation in which the parties communicated separately to a mediator. Family Dollar has denied any discrimination.