Equal Employment Opportunity Commission v. JP Morgan Chase Bank, N.A.
Filing
168
ORDER DISMISSING CASE. Signed by Judge Gregory L Frost on 1/31/14. (kn)
IN THE UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF OHIO
EASTERN DIVISION
EQUAL EMPLOYMENT OPPORTUNITY
COMMISSION,
Plaintiff,
v.
JP MORGAN CHASE BANK, N.A.,
Defendant.
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Case No. 2:09-CV-00864
Judge Gregory L. Frost
Magistrate Judge King
CONSENT DECREE
INTRODUCTION
1.
Plaintiff, the U.S. Equal Employment Opportunity Commission (the "EEOC" or
"Commission") commenced this action on September 29, 2009, in the United States District
Court for the Southern District of Ohio, against Defendant JP Morgan Chase ("Defendant”). In
its Amended Complaint, the Commission alleged that Defendant engaged in discriminatory
employment practices by subjecting female Mortgage Consultants in its Consumer Direct Sales
department at its Polaris Park, Columbus, Ohio facility, currently referred to as Mortgage
Bankers, to different terms and conditions of employment based on their sex, which negatively
impacted their compensation, including their ability to earn bonuses and commissions. The
Commission also alleged that Defendant subjected the female employees to a hostile work
environment based on sex which included the imposition of sex-based loan assignments, and
sex-based demeaning remarks, all created, fostered and maintained by management.
2.
This Decree shall not constitute an adjudication on the merits of the Commission’s case
and shall not be construed as any admission by Defendant of any discriminatory practice or of
liability with respect to any Claimant.
3.
As a result of settlement discussions, the Commission and Defendant have resolved their
differences and have agreed that this action should be settled by entry of this Consent Decree. It
is the intent of the parties that this Consent Decree be a final and binding settlement in full
disposition of any and all claims alleged in the Complaint against Defendant and shall apply only
to the Mortgage Bankers working at Defendant’s Consumer Direct Sales department at the
Polaris Park, Columbus, Ohio facility.
FINDINGS
4.
The EEOC is the Agency of the United States government authorized by Title VII to
investigate allegations of unlawful employment discrimination because of sex, to bring civil
actions to prohibit unlawful practices, and to seek relief for individuals affected by such
practices.
5.
Defendant is an employer engaged in an industry affecting commerce within the meaning
of Section 701(b), (g) and (h) of Title VII, 42 U.S.C. Section 2000e-(b), (g) and (h). Defendant
has continuously had and does now have at least fifteen (15) employees.
6.
Pursuant to Title VII, the parties acknowledge the jurisdiction of the United States
District Court for the Southern District of Ohio over the subject matter and over the parties to
this case for the purpose of entering this Consent Decree and, if necessary, enforcing this Decree.
7.
Venue is appropriate in the Southern District of Ohio. For purposes of this Decree and
any proceedings related to this Decree, Defendant agrees that all statutory conditions precedent
to the institution of this lawsuit against Defendant have been fulfilled.
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8.
Having examined the terms and provisions of the Consent Decree and based on the
pleadings, records, and stipulations of the parties, the Court finds the following:
A.
The Court has jurisdiction over the subject matter of this action against Defendant
and the parties;
B.
The terms and provisions of this Consent Decree are fair, reasonable, and just.
The rights of Defendant, the EEOC, and those for whom the EEOC seeks relief
are adequately protected by this Decree;
C.
The Consent Decree conforms with the Federal Rules of Civil Procedure, Title
VII, and is not in derogation of the rights and privileges of any person. The entry
of this Consent Decree will further the objectives of Title VII and will be in the
best interests of the parties and those for whom the EEOC seeks relief.
NOW, THEREFORE, IT IS ORDERED, ADJUDGED AND DECREED THAT:
NON-DISCRIMINATION
9.
This Decree shall apply only to the Mortgage Bankers working at Defendant’s Consumer
Direct Sales department at the Polaris Park, Columbus, Ohio facility.
10.
Defendant is hereby enjoined from engaging in the sex-based harassment of any
employee. The prohibited harassment includes the imposition of disparate terms and conditions
of employment, the assignment of loans, leads, incentive compensation, and bonuses based on
sex, the use of offensive or derogatory comments, or other verbal or physical conduct based on
an individual’s sex, which creates an intimidating, hostile, or offensive working environment, or
interferes with the individual’s work performance in violation of Title VII, which, in part, is set
forth below:
It shall be an unlawful employment practice for an employer -3
(1) ... to discriminate against any individual with respect to [his or her] ... terms,
conditions, or privileges of employment, because of such individual’s … sex ....
42 U.S.C. § 2000e-2(a)(1).
NON-RETALIATION
11.
Defendant is further enjoined from retaliating against any employee who complains of
harassment based on sex, as set forth in the following provision of Title VII:
It shall be an unlawful employment practice for an employer to discriminate against any
of his employees ... because he has opposed any practice made an unlawful employment
practice by this subchapter, or because he has made a charge, testified, assisted, or
participated in any manner in an investigation, proceeding, or hearing under this
subchapter.
42 U.S.C. § 2000e-3(a).
DURATION OF DECREE
12.
This Consent Decree shall be in effect for a period of two (2) years from the date it is
entered by the Court.
MONETARY RELIEF
13.
Defendant will pay a total of $1,450,000 to resolve this action: $979,389 as compensatory
and punitive damages and $470,611 as back wages. The claimants who will receive payments
shall be determined solely by EEOC, which will notify Defendant, within seven (7) days after
entry of the Decree, of the amount of distribution to each claimant and provide to Defendant
each claimant’s address and a signed W-9 form for each claimant. Within twenty one (21) days
after EEOC provides the names, amounts, addresses and signed W-9 forms, Defendant will send
checks in the amounts determined by EEOC to each of the identified claimants. Within fourteen
(14) days after these payments, Defendant will send a photocopy of each claimant’s check, along
with a photocopy of the Federal Express receipt, to the EEOC's attorney of record. Defendant
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will send to each identified claimant two checks, one check representing lost wages (minus all
deductions required by law) and the second check representing compensatory damages, and will
mail both checks by Federal Express. Defendant will issue to each claimant a Form W-2
representing the amount of lost wages and a Form 1099 representing the amount of
compensatory damages.
14.
If, for any reason, funds remain after Defendant has attempted to distribute all funds to
the identified claimants, any remainder funds will be contributed to a charity to promote
women’s workplace readiness.
EQUITABLE RELIEF: NOTICE TO EEOC OF CLAIMS
15.
On a quarterly basis commencing June 1, 2014 and ending on March 1, 2016, Defendant
shall 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.
EQUITABLE RELIEF: AUTOMATIC CALL DISTRIBUTION SYSTEM
RECORDKEEPING AND REPORTING.
16.
By June 1, 2014 Defendant shall create the following records (which may be from
multiple sources) related to Mortgage Bankers at the Consumer Direct Sales department of
Defendant’s Polaris Ohio facility and preserve them for three (3) years after the date Defendant
commences creating these records. If Defendant should make any change to its systems such
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that the creation of any of the records are impractical, the parties will meet in good faith to
attempt to agree on appropriate changes to this paragraph. If the parties cannot agree, they will
submit the matter to the Court.
a.
Defendant will maintain, in electronic form, a system log that records changes to
ACD skill/level assignments, sufficient to memorialize all changes to Mortgage Banker skill
assignments and skill levels along with information sufficient to determine the names of the
persons who initiated the change during the effective period of this Consent Decree.
b.
Defendant will create and maintain quarterly snapshots which will show the agent
selection method and call selection method employed in the ACD system for the Mortgage
Bankers at the Polaris facility throughout the effective period of this Consent Decree.
c.
Defendant will maintain, in electronic form, for the effective period of the
Consent Decree, a record of all individual applications taken by each Mortgage Banker, along
with the date of application, the amount of funding sought, and the Mortgage Banker’s record of
the skill queue or other source through which the caller initially reached the Mortgage Banker
who took the application.
d.
Defendant will maintain, in electronic form, for the effective period of the
Consent Decree, a record of all individual applications taken by each Mortgage Banker that
funded and closed, along with the date of funding, the amount of funding, and the Mortgage
Banker’s record of the skill queue or other source through which the caller initially reached the
Mortgage Banker who took the application.
e.
Defendant will maintain all individual Mortgage Bankers’ ACD call record data
throughout the duration of this Consent Decree. Such call record data shall include, at minimum,
each Mortgage Banker’s name, the date and duration of each call, the skill to which the call was
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routed, and the skill level assigned to that Mortgage Banker’s skill assignment at the time the
Mortgage Banker answered the call.
f.
Defendant will maintain all individual Mortgage Bankers’ skill login data
throughout the duration of this Consent Decree. Such skill login data shall include, at minimum,
each Mortgage Banker’s name, the date and time of login, the skills the Mortgage Banker was
assigned at time of login, and the skill level assigned to each Mortgage Banker’s skills at the
time of login.
g.
Defendant will create, maintain, and update as needed a summary record of all
skill codes, skill code nomenclature, brief description of skill, period of use of that skill,
Mortgage Banker membership in each skill queue, skill level assigned to each skill, and period of
skill and skill level assignment throughout the duration of this Consent Decree.
h.
Defendant will maintain a record of all individual Mortgage Bankers’ team
leader/supervisor, and manager/AVP on a weekly basis throughout the duration of this Consent
Decree, in sufficient detail to allow determination of each Mortgage Banker’s first- and secondlevel supervisors on any given date within the period.
i.
For any skill newly employed in the Polaris ACD system for Mortgage Bankers in
the Consumer Direct Sales department during the effective period of this Consent Decree,
Defendant shall maintain all documents describing the reason for the new skill, its intended
target audience, its employment dates, the dial-in (or 1-800) numbers assigned to the skill, the
names of Mortgage Bankers assigned the skill, the skill levels assigned to Mortgage Bankers
who are assigned the skill and volume of calls answered, applications, and fundings; funding
volumes; conversion rate; and pull-through rate. Defendant shall maintain in electronic form
records of the dial-in (1-800) numbers routed to each skill, and in sufficient form to allow the
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determination of the routing of any dial-in (1-800) number on any day throughout the duration of
this Consent Decree.
17.
If changes to Defendant’s ACD system make collection or preservation of the above
records impossible or impracticable, Defendant shall notify EEOC sixty (60) days prior to the
implementation of the change, stating in particular the recordkeeping requirement affected by the
change, its expected extent, and the reasons why the recordkeeping requirement will be affected.
18.
Defendant shall produce the records set forth in Paragraph 16(a)-(i) above on an annual
basis beginning March 1, 2015 and ending March 1, 2016 , provided, however, that nothing in
this Paragraph shall impede EEOC’s access to these records as otherwise provided by law in the
performance of EEOC’s statutory duties.
EQUITABLE RELIEF: REPORTS TO EEOC OF DISCRIMINATION
ALLEGATIONS AND WITNESSED CONDUCT
19.
On a quarterly basis commencing June 1, 2014 and ending March 1, 2016, Defendant
shall submit written reports to the Commission’s Baltimore Field Office, to the attention of the
Regional Attorney 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
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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.
Such reports must be updated and sent to the
Commission’s Baltimore Field Office on a quarterly basis until final action is taken by
Defendant on the complaint or the circumstances suggesting possible sex discrimination.
EQUITABLE RELIEF: POLICIES AND TRAINING
20.
At the Consumer Direct Sales department of its Polaris facility Defendant shall adhere to
a sex/sexual harassment policy that is consistent with the requirements of Title VII. Defendant
shall notify EEOC sixty (60) days in advance should Defendant intend to make any substantive
changes to its Equal Opportunity, Anti-Discrimination and Anti-Harassment Policy – Global, last
updated 10/1/13.
21.
By June 1, 2014, and again not later than June 1, 2015, Defendant shall provide to all
Supervisors, Managers, and Directors of Mortgage Bankers within the Consumer Direct Sales
department at its Polaris facility two hours of training regarding Title VII, with particular focus
on sex based disparate treatment and its various forms, including but not limited to terms and
conditions of employment, including harassment and retaliation. Defendant shall also provide
such training to all persons who acquire such positions during the term of the Decree within sixty
(60) days of their first day at work in such positions.
On an annual basis, Defendant will forward to the Commission a list reflecting the names
and job titles of attendees of such training. The training will be designed and provided by inhouse employment counsel or a third-party consultant (to be approved by the EEOC), at
Defendant’s expense. The provider’s identity and credentials and the content of the training
program (including training manuals and handout materials), shall be forwarded to the EEOC at
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least thirty (30) days prior to the training.
Defendant represents that it already provides training
and will continue to provide training to all persons in Defendant's human resources department
charged with supporting the personnel from the Polaris Consumer Direct Sales department.
EQUITABLE RELIEF: POSTING OF NOTICE
22.
Defendant shall post a copy of the Notice attached as Attachment A in a conspicuous
location at its facilities where employee notices for Mortgage Bankers at the Polaris Consumer
Direct Sales department personnel are posted. The Notice shall be posted for the duration of this
Consent Decree. In the event that the notice becomes defaced, marred or otherwise made
unreadable, Defendant shall immediately post a readable copy of such notice(s).
EMPLOYMENT VERIFICATION
23.
Defendant will instruct its managers, supervisors, and all individuals with personnel
oversight of Mortgage Bankers within the Polaris Consumer Direct Sales to direct employment
verification requests to the JPMorgan Chase Automated Verification System at 212-622-8650.
This system limits the release of information to dates of employment and last position held
unless the employee authorizes release of salary information.
DISPUTE RESOLUTION AND COMPLIANCE
24.
In the event either party to this Decree believes the other party has failed to comply with
any provision(s) of the Decree, the complaining party shall notify the other party of the alleged
non-compliance within twenty (20) business days of the alleged non-compliance and afford the
alleged non-complying party twenty (20) business days to remedy the non-compliance or satisfy
the complaining party that the alleged non-complying party has complied. If the alleged noncomplying party has not remedied the alleged non-compliance or satisfied the complaining party
that it has complied within twenty (20) business days, the complaining party may apply to the
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Court for appropriate relief.
25.
This Court will have all available equitable powers to enforce this Decree, including
injunctive relief.
COURT COSTS AND ATTORNEY FEES
26.
Each party shall bear its own court costs and attorneys' fees.
MISCELLANEOUS
27.
If any provision(s) of this Consent Decree is found to be unlawful, only the specific
provision(s) in question shall be affected and the other provisions will remain in full force and
effect.
28.
If during the duration of this Consent Decree Defendant’s Consumer Direct Sales
Department at the Polaris Park, Columbus, Ohio is acquired by another entity in a transaction
which includes the Mortgage Banker employees working at the Polaris Park, Columbus, Ohio
facility, this Consent Decree shall be binding upon that entity.
29.
When this Consent Decree requires the submission of any documents to the EEOC, if not
otherwise indicated in the Decree or Attachments, they shall be mailed or electronically
transmitted to the Commission’s Baltimore Field Office and to the attention of the Regional
Attorney.
IT IS AGREED:
EQUAL EMPLOYMENT
OPPORTUNITY COMMISSION
P. DAVID LOPEZ
General Counsel
JAMES LEE
Deputy General Counsel
JP MORGAN CHASE
/s/ Angelique Paul Newcomb
ANGELIQUE PAUL NEWCOMB
Littler Mendelson
21 East State Street, 16th Floor
Columbus, OH 43215
614.463.4246
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GWENDOLYN YOUNG REAMS
Associate General Counsel
/s/ Mark S. Dichter
MARK S. DICHTER
Morgan Lewis & Bockius LLP
1701 Market Street
Philadelphia, Pennsylvania 19103-2921
/s/ Debra M. Lawrence
DEBRA M. LAWRENCE
Regional Attorney
EEOC-Baltimore Field Office
City Crescent Building, 3rd Floor
10 South Howard Street
Baltimore, MD 21201
Office #: (410) 209-2734
/s/ David Staudt
DAVID STAUDT
Senior Trial Attorney
EEOC-Baltimore Field Office
City Crescent Building, 3rd Floor
10 South Howard Street
Baltimore, MD 21201
Office #: (410) 209-2249
/s/ Deborah Kane
DEBORAH KANE
Senior Trial Attorney
EEOC-Pittsburgh Area Office
William S. Moorhead Federal Building
1000 Liberty Avenue, Suite 1112
Pittsburgh, Pennsylvania 15222
(412) 395-5866
Dated:
IT IS SO ORDERED:
DATED:
/s/ Gregory L. Frost
GREGORY L. FROST
United States District Judge
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NOTICE TO EMPLOYEES POSTED PURSUANT TO A CONSENT
DECREE BETWEEN THE UNITED STATES EQUAL EMPLOYMENT
OPPORTUNITY COMMISSION AND JP MORGAN CHASE
Under Section 703(a) of Title VII, it is unlawful for an employer to "discriminate against
any individual with respect to his [or her]... terms, conditions, or privileges of
employment because of such individual’s … sex …."
A sex-based hostile work environment results from the discriminatory imposition of
terms and conditions of employment on one sex over another sex. This can include
disparate assignments of calls, loans, and skills, and disparate application of workplace
rules and criteria and such that one sex is disadvantaged.
Harassment on the basis of sex violates Title VII. The use of offensive or derogatory
comments, or other verbal or physical conduct based on an individual's sex constitutes
unlawful harassment if the conduct creates an intimidating, hostile, or offensive working
environment, or interferes with the individual's work performance.
Under Section 704(a) of Title VII, "it shall be an unlawful employment practice for an
employer to discriminate against any of his employees ... because he has opposed any
practice made an unlawful employment practice by this subchapter, or because he has
made a charge, testified, assisted, or participated in any manner in an investigation,
proceeding, or hearing under this subchapter."
JP MORGAN CHASE WILL NOT engage in any acts or practices made unlawful by the
above sections.
JP MORGAN CHASE WILL NOT engage in any harassment of employees based on sex.
JP MORGAN CHASE WILL NOT retaliate against employees for complaining about
harassment based on sex.
JP MORGAN CHASE
(Employer)
Dated: _____
By:
__________________________
EXHIBIT "A"
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