In recent news, JPMorgan Chase and Co. agreed to a settlement to end the discrimination lawsuit from black advisers. Members of the class action lawsuit who alleged discrimination, six current and former employees of the New York-based bank, will receive $19.5 million. The members claimed that because they were black they were sent to less lucrative JPMorgan branches, denied professional opportunities, kept out of a program reserved for richer clientele, and paid less than their white colleagues.
In court documents, the plaintiffs claimed that the racial disparities are a result of the company’s systemic, intentional race discrimination as well as from Chase policies and practices that, due to their disparate impact on African-Americans, are unlawful.
Plaintiffs in the case are: Jerome Senegal (from Texas), Erika Williams (from Illinois), Brent Griffin (from Wisconsin), Irvin Nash (from New York), Amanda Jason (from Kentucky), and Kellie Farrish (from California). As part of the settlement agreement, JPMorgan also agreed to put $4.5 million in a fund set aside to back recruitment, bias training, a full review of branch assignments in light of the case findings, and a coaching program reserved for JPMorgan’s black advisers.
JPMorgan has been hit with alleged discrimination before. Last year the bank was accused of willfully violating the U.S. Fair Housing Act and the Equal Credit Opportunity Act from 2006-2009 as well as a reckless disregard for the rights of a minimum of 53,000 minority borrowers. Other banks have been scrutinized for similar practices.
Last year, a black employee filed a complaint alleging that Goldman Sachs removed her from profitable accounts and overlooked her for promotions. Earlier this year Wells Fargo faced claims of cultivating gender-bias within the organization’s wealth-management operations.
If you need to discuss discrimination in the workplace or if you have other questions about labor law violations, please get in touch with one of the experienced California employment law attorneys at Blumenthal Nordrehaug Bhowmik De Blouw LLP.