JPMorgan Loses Another Ruling in Labor Department's Gender Pay Discrimination Case
Lawyers for JPMorgan, represented by McGuireWoods, argued that the Labor Department waited too long to tell the bank about alleged gender-based compensation allegations. An administrative law judge ruled for labor enforcers.
May 09, 2018 at 01:49 PM
4 minute read
A federal administrative judge on Tuesday, ruling against JPMorgan Chase & Co., declined a procedural invitation from the bank to strike down U.S. Labor Department claims that compensation practices discriminated against women.
Lawyers for JPMorgan, represented by McGuireWoods, argued that the Labor Department waited too long to tell the bank about alleged gender-based compensation allegations. Records show labor regulators notified the bank in March 2015 about alleged compensation discrimination against women in certain posts.
The Labor Department's Office of Federal Contract Compliance Programs (OFCCP) told JPMorgan CEO Jamie Dimon that year that the bank “has discriminated against 94 qualified females in their compensation because of their gender.” The notice, citing data from 2012, was rooted in a routine compliance evaluation of JPMorgan as a federal contractor.
The bank's attorneys urged Timothy McGrath, a Labor Department administrative law judge, to find that the agency's claims were out of bounds because the bank was “not put on notice of the OFCCP's allegations of discrimination until more than 1,000 days after the day on which the alleged discrimination took place.”
The Labor Department filed its administrative complaint against JPMorgan in January 2017 in the waning days of the Obama administration. The case, one of several big actions that was brought before the Trump administration took over, is unfolding at a time of increasing scrutiny on compensation practices and workplace culture at major U.S. companies.
The McGuireWoods team, led by William Doyle Jr., argued that federal civil rights law requires that an enforcement action be filed within 180 or 300 days of an alleged unlawful employment practice.
“OFCCP's position that Congress implicitly gave it vastly broader and unlimited powers that Congress expressly withheld from EEOC based on its expressed concern about timely notice to the employer of allegations of discrimination, is nonsensical as an interpretive doctrine,” JPMorgan's lawyers wrote in a filing.
Doyle, a partner in McGuireWoods' Raleigh, North Carolina, office was not immediately reached for comment Wednesday. A former deputy director of the Labor Department's contract compliance office, Doyle joined the firm in 2015.
Labor Department attorneys argued that the administrative complaint and the notice of the alleged compensation discrimination were timely. Agency attorneys said Title VII's time limits do not apply to OFCCP's actions arising from compliance audits. “[T]here is no relevant time limit for OFCCP,” Labor Department lawyers Anna Bennett and Alexander Kondo said in a filing in the case in March 2017.
Lawyers for the bank have called the Labor Department's claims “unfounded” and “conclusory,” and argued that the evidence the agency presented failed “to state a plausible claim of systemic discrimination” against women.
“The administrative complaint alleges no facts related to the work performed, responsibility level, skills and qualifications or the other relevant factors that could possibly establish that the employees compared are similarly situated,” JPMorgan's lawyers wrote in a filing in February 2017. The attorneys contend the Labor Department “has failed to identify any specific employment practice that allegedly caused a disparate impact in pay.”
The Labor Department said in its complaint that JPMorgan “continues to fall short of its obligations, compensating a group of female employees significantly less than their male counterparts and thereby failing to eliminate sex discrimination from its compensation process.”
Labor enforcers proposed corrective action that included JPMorgan's evaluation of compensation systems “to determine whether and where impediments to equal opportunity exist, including analyzing all impediments that result in gender-based and race-based disparities.”
A Labor Department lawyer involved in the JPMorgan case was not immediately reached for comment Wednesday, and an agency spokesperson declined to comment on the pending litigation. The Trump-appointed Labor Department solicitor, Kate O'Scannlain, a former Kirkland & Ellis partner in Washington, now oversees all of the agency's litigation.
JPMorgan recently renewed its effort to dismiss the agency's administrative complaint, according to a docket entry posted on May 4. Last year, a Labor Department appellate panel ruled against an earlier effort from JPMorgan to shut down the case.
➤➤ Get employment law news and commentary straight to your in-box with Labor of Law, a new Law.com briefing. Learn more and sign up here.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllUS Judge Cannon Blocks DOJ From Releasing Final Report in Trump Documents Probe
3 minute readPrivate Equity Giant KKR Refiles SDNY Countersuit in DOJ Premerger Filing Row
3 minute readThree Akin Sports Lawyers Jump to Employment Firm Littler Mendelson
Trending Stories
- 1Trump Administration Faces Legal Challenge Over EO Impacting Federal Workers
- 2Supreme Court Considers Reviving Lawsuit Over Fatal Traffic Stop Shooting
- 3Long Hours and Lack Of Boundaries: Associates In India Are Leaving Their Firms
- 4Goodwin Procter Relocates to Renewable-Powered Office in San Francisco’s Financial District
- 5'Didn't Notice Patient Wasn't Breathing': $13.7M Verdict Against Anesthesiologists
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250