WASHINGTON–In an action that actually goes back nearly 10 years, the Consumer Financial Protection Bureau agreed to pay $6 million to settle an employment discrimination lawsuit filed by current and former Black and Hispanic employees.
The proposed settlement, which still requires approval from the U.S. District Court for the District of Columbia, covers 85 CFPB employees from minority groups who alleged they were paid less than their White colleagues and faced retaliation when they complained about pay and working conditions.
The unopposed deal, filed Aug. 31, includes current and former Black or Hispanic CFPB employees.
The employees originally filed their suit back 2018, making numerous allegations against the Bureau, including disproportionate treatment of employees based on their race, such as paying minorities and women lower wages, using performance evaluations that resulted in higher performance ratings for White or male employees compared with African-American and Hispanic employees and women, and excluding minorities and women from projects that were regularly offered to White or male employees.
Action Began in 2014
The two named plaintiffs actually initiated their action in 2014, first using the Equal Employment Opportunity Commission before filing their lawsuit.
Under the proposed settlement, the CFPB will create a fund of $6 million to compensate members of the class, cover attorney’s fees, and cover any other costs of administering the settlement. The members of the class will be African-American and Hispanic employees who served in non-supervisory positions between 2011 and 2022 in the CFPB’s Office of Consumer Response.
Cap of $300,000 Per Person
The amount that any one member of the class can receive under the settlement will be capped at $300,000 in order to ensure that no member of the class is paid a disproportionate sum. The plaintiff’s attorneys will receive an amount no greater than 25% of the settlement fund, according to the settlement.
A copy of the proposed settlement in the case of Jones and Paz-Chow v. Chopra and the Consumer Financial Protection Bureau can be accessed by clicking here.
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