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JP Morgan will pay $800K in backpay and allocate $9M to settle lawsuit over underpaying 93 women

JP Morgan will pay $800K in backpay and allocate $9M over the next five years to settle lawsuit that claimed the bank has underpaid 93 women since 2012

  • JP Morgan Chase & Co settled a lawsuit on Monday, launched by the US Department of Labor in January 2017, alleging they underpaid at least 93 women 
  • In the settlement JP Morgan will pay $800,000 in back wages and will allocate $9million over the next five years in compensation adjustments
  • JP Morgan was accused of underpaying 93 women in the Investment Bank, Technology and Market Strategies unit compared to men since May 2012
  • The pay discrimination was allegedly discovered during a 2012 audit 
  • The settlement only includes 67 of the class members in the lawsuit 

JP Morgan Chase & Co will pay $800,000 in back wages and allocate $9million over the next five years in compensation adjustments to settle a lawsuit that accused the bank of underpaying women.

The financial giant resolved the long-running pay bias lawsuit on Monday and it was made public Wednesday, Bloomberg Law reported.

The long-running lawsuit brought by the US Department of Labor in January 2017, accused JP Morgan of underpaying 93 women who worked as lead application developers, project managers and technology directors in the Investment Bank, Technology and Market Strategies unit compared to men who held the same roles since at least May 2012. 

It also accused JP Morgan of not ensuring a path to fair pay for its employees.

However, the settlement only includes 67 of the class members in the lawsuit. 

JPMorgan Chase & Co will pay $800,000 in back wages and allocate $9million over the next five years in compensation adjustments to settle a lawsuit that accused the bank of underpaying 93 women since at least May 2012

The pay discrimination was allegedly discovered during a 2012 audit. 

Officials haven’t stated what the precise wage gap was in the case. 

The settlement settles and closes ‘all pending, scheduled or in-person’ compliance evaluations.

Additionally it requires annual pay adjustments of at least $1.8million per year for five years, totaling to $9million.

JP Morgan Chase CEO Jamie Dimon pictured above

JP Morgan Chase CEO Jamie Dimon pictured above

In the deal, if JP Morgan complies with the stipulations, it will be exempt from Office of Federal Contract Compliance Programs (OFCCP) audits for at least seven years.

JP Morgan disputed the OFCCP’s claims of pay bias saying the allegations were improperly based on comparing the pay of employees who were not similarly situated.

A JP Morgan spokesperson tells DailyMail.com: ‘There have been no findings of any wrongdoing in this action. Although we strongly dispute the allegations, this resolution allows all parties to move forward cooperatively.’

The settlement states: ‘This agreement does not constitute an admission by JPMC.’ 

DailyMail.com has reached out to the Labor Department for comment on the case. 

At the time when the suit was launched the bank said in a statement it was committed to to diversity in the workplace and that it tried to work with the Justice Department to resolve the matter.

The bank said it was disappointed in the suit but said, ‘We look forward to presenting our evidence to a neutral decision maker,’ as per USA Today.

As a federal contractor it is illegal for JP Morgan Chase to discriminate in employment based on race, color, religion, sex, sexual orientation, gender identity, national origin, disability or veteran status.

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