Tuesday, February 4, 2014

EEOC Settles Sexual Harassment $1.45M Lawsuit Against JPMorgan Chase Arising from Polaris Call Center

Yesterday, the EEOC announced that it had settled a sexual harassment lawsuit it filed in September 2009 in federal court in Columbus (Civil Action 2:09-cv-00864)  against JPMorgan Chase arising out of an alleged sexually hostile work environment at the Polaris call center.  The $1.45M paid by the Bank will be "allocated among the 16 female mortgage bankers who worked at” the Polaris office and was divided between back wages and compensatory and punitive damages.  According to the EEOC, the Bank “maintained a sexually hostile work environment towards its female mortgage bankers,” which consisted of “sexually charged behavior and comments from supervisory staff and participating mortgage bankers.”  In addition, the EEOC also alleged that “female mortgage bankers who did not embrace and participate in these circumstances became ostracized and suffered economic consequences by being deprived of lucrative sales calls, being deprived of training opportunities and being denied other benefits of employment.”

The court’s docket reflects that extensive discovery was conducted and the summary judgment motions filed by both sides were denied.
The consent decree resolving the case provides that it does not constitute an admission by the Bank.  It enjoins the Bank from creating or maintaining a sexually hostile work environment and from retaliating against any employee who complains about sexual harassment.   For the next two years, the Bank is required on a quarterly basis to:  

·        give notice to the Commission of the institution of any judicial or administrative proceeding (including the filing of a  charge or complaint with the Ohio Civil Rights Commission) against Defendant, wherein the person or entity instituting the  proceeding alleges sex-based/sexual harassment or other sex discrimination arising from alleged conduct involving Mortgage Bankers at the Consumer Direct Sales department of Defendant’s Polaris, Ohio facility or any successor facility where Defendant’s Ohio-based Mortgage Bankers in its Consumer Direct Sales department may relocate, and include a copy of the complaint or charge.

·         . . . submit written reports to the Commission’s Baltimore Field Office,  . . .  regarding all written or oral complaints of sex/sexual harassment or other sex discrimination made to Defendant’s Human Resources Department or Corporate Employee Relations Department, whether sufficient to state an actionable claim under Title VII or not, and any corrective action taken in response to the complaints. Such reports shall contain the following: the dates and time period pertinent to the complaint; the allegations of sex/sexual harassment or other sex discrimination, the full name, job title, work address, last known home address, and last known home telephone number of any complainant; the full name, job title and work address of any persons who received any complaints; if other than the complainant, the full name, job title, work address of any person alleged by a complainant to have been a victim of sex discrimination or sex based harassment, and the full name, job title, work address, and professional relationship to the complainant or alleged victim of the person or persons whose conduct is the subject of a complaint. . . .

The Bank also agreed to develop by June an extensive call data retention system so that assignments of sales calls could be accessed and analyzed to ensure that they are being equitably distributed among the mortgage bankers. These records, among other things, must also reflect each employee’s supervisor and manager each week.  The Bank is required to maintain and preserve the records for three years after they are created and to produce them annually or upon request to the EEOC (until March 2016).

The Bank is also required by the consent decree to provide two hours of training on sexual harassment, discrimination and retaliation to “
Supervisors, Managers, and Directors of Mortgage Bankers within the Consumer Direct Sales department at its Polaris facility” by June and again within the following year.  This training shall be provided within 60 days to individuals hired, transferred or promoted into such positions as well.  The EEOC must review the training materials in advance and must be annually given a list of everyone who attends.  The Bank also agreed to continue its past practice of training its Human Resources employees.

 The consent decree also requires the Bank to post a notice for the period of the decree essentially outlining every employer’s obligations under Title VII.

 NOTICE: This summary is designed merely to inform and alert you of recent legal developments. It does not constitute legal advice and does not apply to any particular situation because different facts could lead to different results. Information here can change or be amended without notice. Readers should not act upon this information without legal advice. If you have any questions about anything you have read, you should consult with or retain an employment attorney.