Thursday's settlement was announced by New York Attorney General Eric Schneiderman and Massachusetts Attorney General Martha Coakley.
National Grid will also pay a $270,000 penalty to Massachusetts. Coakley said the accord also resolves actions by the International Brotherhood of Electrical Workers; the United Steelworkers, AFL-CIO; and the Utility Workers Union of America.
Jackie Barry, a National Grid spokeswoman, said the company is pleased to settle. "We have made significant progress in resolving the payroll issues that have been affecting our employees, and regret the inconvenience and frustration that these issues have caused."
National Grid said it employs about 17,000 people in the United States. The company is based in London.
(Reporting by Jonathan Stempel in New York; editing by Matthew Lewis)
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