Settlement to resolve allegations of pay bias for females and blacks
State Street Corp., an asset management firm, has entered into a conciliation agreement with OFCCP after an analysis of pay data at its Boston headquarters revealed “statistically significant” disparities in pay between male and female workers and black and white workers “even when legitimate factors affecting pay were taken into account.” State Street has agreed to pay 305 female and 15 black and female executives about $4.5 million in back pay and over $500,000 in interest.
OFCCP alleges that since December 2010, State Street has given female senior vice presidents, managing directors and vice presidents lower base salaries, bonus pay and total compensation, and similarly underpaid black vice presidents. Payments will be made to class members based on the length of time they have worked at State Street.
State Street has 180 days to analyze and share its findings with OFCCP how it pays senior vice presidents, managing directors and vice presidents at its Boston office. The analysis must consider factors such as workers’ prior year performance ratings, their experiences in their current jobs and at other positions within the company, their pay grades, job groups and full-time status. They have agreed to perform this analysis once per year over the next three years.
In addition to the above, State Street must evaluate whether certain practices and policies to determine if they have a disproportionately negative effect on female and black workers. If negative results are found, the policy and procedure must be revised. State Street will evaluate the following practices:
• Calculating starting salary and pay increases, • Promoting workers, • Evaluating performance, and • Granting leave and transferring workers.