JPMorgan to pay nearly $800,000 in back wages to affected women
JPMorgan Chase entered into an early resolution conciliation agreement with OFCCP on November 2, 2020 to resolve claims of wage disparity among female employees. The settlement brings closure to nearly four years of litigation after OFCCP filed suit in 2017 (see previous blog) during a functional AAP review.
JPMorgan has agreed to fund an escrow account with $800,000 in back pay and interest that is accessible to a third-party settlement administrator for distribution to affected women. The company also agreed to conduct annual pay equity analyses and provide reports on the company’s compliance for the next five years. Additionally, the company will allocate a minimum of $1,800,000 per year for a five-year period for a total of $9,000,000 for annual pay adjustments to women and minorities.
In signing and maintaining compliance with the agreement, OFCCP will close all pending JPMorgan audits and the company will be exempt from new audits for at least seven years.