Goldman Sachs has reached a $215 million settlement of a gender discrimination class action covering nearly 3,000 female associates and vice presidents who were allegedly disadvantaged by the investment bank’s biased evaluation metrics over the past 20 years. Of that sum, the judge agreed to carve $78 million for attorney fees.
The suit alleged that Goldman Sachs’ two main evaluation appeared gender-neutral at first glance but actually systematically placed women in lower rankings than men. In addition to the $215 million payment—believed to be the biggest sex discrimination settlement on record—Goldman Sachs agreed to modify its evaluation and promotion practices, and will also bring in an outside labor economist to ensure that pay gaps do not persist going forward. The bank has denied all wrongdoing.
What would a respectful workplace do?
Respectful workplaces rank and evaluate their workers fairly. They don’t make business decisions based on an individual’s age, gender, race, or other protected characteristics. Employers with anti-discrimination, harassment, and retaliation policies, who train managers on those policies, and who hold their employees accountable have the best chance of creating and maintaining a respectful workplace – and staying out of court!
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Information here is correct at the time it is posted. Case decisions cited here may be reversed. Please do not rely on this information without consulting an attorney first.
