The settlement agreement covers the 85 class members who claim to have suffered from lower wages based on race and gender discrimination.
01/09/2024 2:00 P.M.
2.5 minute read
The Consumer Financial Protection Bureau has agreed to pay $6 million to settle a discrimination lawsuit brought by current and former Black and Hispanic employees, according to a recent article from American Banker.
After nearly 10 years of legal battles, Judge Beryl A. Howell from the U.S. District Court for the District of Columbia granted approval for the CFPB to settle the class-action lawsuit.
The class comprises 85 individuals, mainly women, who served or are serving as Consumer Response Specialists and claim to have suffered from the bureau’s pervasive discrimination, retaliation, and unfair policies. Specially, they alleged they were paid lower wages than their white counterparts and faced retaliation when speaking up.
The lead plaintiffs in the case, Carzanna Jones and Heynard Paz-Chow, helped establish the National Treasury Employees Union at the CFPB and served, respectively, as union steward and chief steward. They both filed internal complaints in 2014 with the CFPB’s Office of Civil Rights and engaged in negotiations to reform the bureau’s compensation system. In 2018, they filed a lawsuit alleging that Blacks and Hispanics employed as consumer response specialists were subjected to discriminatory and retaliatory policies and practices.
Despite the settlement, the CFPB does not admit to any wrongdoing. In a statement, the bureau asserted its ongoing commitment to ensuring fair treatment for all employees. Notably though, the bureau highlighted recent updates to its pay structures, emphasizing that these changes are unrelated to the discrimination allegations.
The settlement agreement includes a $6 million fund allocated to the 85 class members and an additional $1.5 million designated for attorney’s fees for the class counsel.