Please note: As of January 20, 2021, information in some news releases may be out of date or not reflect current policies.
US Labor Department sues JPMorgan Chase & Co. for discriminatory pay practices against female employees
NEW YORK – The U.S. Department of Labor filed a lawsuit against JPMorgan Chase & Co., alleging that the financial institution systematically discriminated against female employees in certain professional positions by compensating them less than their male counterparts. The suit maintains that JPMorgan’s compensation policies and practices violated Executive Order 11246, which prohibits federal contractors from discriminating in employment on the basis of sex.
In its compliance review, the department’s Office of Federal Contract Compliance Programs found that – since at least May 15, 2012 – JPMorgan paid at least 93 females employed in Application Developer Lead II, Application Developer Lead V, Project Manager and Technology Director positions within its Investment Bank, Technology & Market Strategies unit, less than comparable men employed in these same positions. This compensation disparity remained after adjusting for differences in legitimate compensation-determining factors. OFCCP also found that JPMorgan failed to evaluate the compensation systems applicable to these employees.
“JPMorgan is required to comply with anti-discrimination laws that apply to federal contractors,” said OFFCP Acting Director Thomas M. Dowd. “We filed this lawsuit to enforce those requirements.”
Filed with the department’s Office of Administrative Law Judges, the complaint seeks:
- A permanent injunction requiring JPMorgan to comply with the requirements of the Executive Order, and according to regulations.
- A permanent injunction prohibiting JPMorgan from discriminating against female employees in compensation.
- Complete relief for the affected class including lost pay, interest, salary adjustments and all other lost benefits of employment.
JPMorgan is one of the nation’s largest banking institutions. If JPMorgan fails to provide relief as ordered, OFCCP is requesting that the court cancel all of its government contracts and debar JPMorgan from entering into future federal contracts until it satisfies the secretary of labor that its personnel and employment policies comply with Executive Order 11246.
OFCCP filed its complaint after determining that it was unable to secure a voluntary agreement from JPMorgan to take corrective action. The full complaint can be viewed here.
In addition to Executive Order 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. These laws, as amended, make it illegal for contractors and subcontractors doing business with the federal government to discriminate in employment because of race, color, religion, sex, sexual orientation, gender identity, national origin, disability or status as a protected veteran. In addition, contractors and subcontractors are prohibited from discriminating against applicants or employees because they have inquired about, discussed or disclosed their compensation or that of others, subject to certain limitations. For more information, please call OFCCP’s toll-free helpline at 800-397-6251 or visit http://www.dol.gov/ofccp/.
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Office of Federal Contract Compliance Programs, U.S. Department of Labor, v. JPMorgan Chase & Co.,