Federal financial services provider agrees to a $4.2m fund to end gender discrimination claims

The Department of Labour (DoL) and a federal financial services provider have reached a conciliation agreement to end alleged gender wage discrimination. State Street Corp and the DoL’s Office of Federal Contract Compliance Programs (OFCCP) reached a $4.2m agreement.

According to a recent statement, they hope to allocate $4.2 million for future pay adjustments to resolve alleged compensation discrimination.

State Street Corp and OFCCP agree on settlement figure

Office of Federal Contract Compliance Programs Acting Director Michele Hodge was confident that the recent allegations could now be ended.

He said, “Our conciliation agreement with State Street Corp. illustrates the Office of Federal Contract Compliance Programs’ commitment to bridge gender wage gaps and successfully achieve pay equality for women in the nation’s workforce.”

State Street Corp has been investigated at multiple Boston-based sites by the OFCCP. They found that there was a claim that female employees had been given an unfair recompense for their roles. This was prevalent in the managing director roles of female staff.

The company was found to breach the Equal Opportunities section of an executive order (Executive Order 11246 – Equal Employment Opportunity).

The Order strictly “prohibits federal contractors and federally‐assisted construction contractors and subcontractors, who do over $10,000 in Government business in one year from discriminating in employment decisions on the basis of race, color, religion, sex, sexual orientation, gender identity or national origin.”

To seal the breach of the order, State Street has agreed to the $4.2m fund to address the compensation due to employees. The allocated amount will also future-proof the policy and working practices at the federal financial services provider.

According to the DoL statement, State Street has made “$483,000 in pay equity adjustments to female managing directors,” so far.

To resolve the findings, State Street has agreed to set aside $4.2 million for future pay equity adjustments to ensure its discrimination-free compensation practices and policies. As part of the agreement, the employer will also work with a consultant to conduct a pay equity analysis for all State Street establishments nationwide, evaluating base pay and total compensation for all employees. The employer has already made at least $483,000 in pay equity adjustments to female managing directors.

Image: Pixlr.

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