HOUSTON (AP) _ Pennzoil agreed to pay $6.75 million to settle a federal lawsuit filed by current and former black employees who accused the company of racially discriminatory employment practices over four years.

The lawsuit was filed by 11 plaintiffs on behalf of all salaried black employees who worked for Pennzoil from Aug. 16, 1994, to Aug. 17, 1998.

The settlement, which is subject to court approval, does not constitute an admission of liability by Pennzoil, the company said Wednesday.

The settlement, minus court-approved legal fees and expenses, would apply to approximately 700 salaried black employees who worked at Pennzoil in the designated period.

Pennzoil, based in Houston, plans to spin off its motor oil, refined products and franchise operations into a company that will merge with Quaker State Corp. of Irving. The merged company, Pennzoil-Quaker State Co., is expected to control 30 percent to 35 percent of the motor oils market in the United States.