The state attorney general's office said Monday that Falasca Mechanical of Vineland will pay the state $250,000 and plumber Bette Feldeisen $150,000 to resolve the case.
Under terms of the settlement, Falasca denies any wrongdoing.
Feldeisen is a member of Plumbers and Pipefitters Union Local 322 and was employed by Falasca for several years before being laid off in 2009 during the economic downturn.
Despite her background with Falasca and experience, Feldeisen alleged the company repeatedly passed over her for public and private projects when it sought plumbers through the union and hired less qualified male plumbers instead.
The state says Local 322 and Falasca have agreed to work together to increase recruitment and hiring of female plumbers.