How To Address Pay Disparity Among Women And Minorities In The Workplace
Key Settlement Terms
As noted above, JPMorgan will pay approximately
$9.8 million dollars to resolve the lawsuit. The
conciliation agreement not only addresses the
alleged pay disparities impacting class members,
which was narrowed to 67 from the original 93, but
implements an annual pay equity analysis system in
effect for the next five years aimed at ensuring that
women and minorities are also being compensated
Using the analyses, JPMorgan has agreed to
allocate $1.8 million per year for the five-year period
and to make annual pay adjustments for women
and minorities to address pay equity. If the pay
adjustments required in a given year total less than
$1.8 million, JPMorgan will use the differential to
fund inclusion and diversity efforts and programs.
The company is also required to provide annual
progress reports of its compliance with the annual
analysis requirements of the agreement. Those
reports will be confidential and privileged.
The agreement also contains favorable terms for
JPMorgan. The OFCCP will close “all pending,
scheduled or in-person compliance evaluations” of
JPMorgan. Further, assuming JPMorgan complies
with the terms of the agreement, it will be exempt
from OFCCP audits for at least seven years. Of
course, JPMorgan must continue to comply with
its affirmative action obligations under Executive
Although the Labor Department has had some recent
setbacks in pay bias litigation (most notably losing a
huge case filed against Oracle in California alleging
discrimination against women and minorities in pay
practices), it continues to enforce its anti-discrimination
mandates and it obtained a fairly sweeping
settlement against JPMorgan. Companies should
remain vigilant and audit their pay practices to
ensure pay equity.
While JPMorgan had certain legal obligations
to ensure pay equity as a federal contractor, pay
equity requirements are not limited to large federal
contractors. There are a myriad of other federal,
state, and local laws that create obligations for
employers to ensure that women (and other
employees) are not underpaid.
This article originally appeared here.
Margaret J. Scheele is a Partner at Fisher Phillips LLP. As a former in-house attorney, Margaret
understands that her clients deal with real business challenges, not just abstract legal issues.
She works for a range of clients in a variety of industries, including aviation, food service,
telecommunications, health care, and government contracting.
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