Goldman Sachs will settle a lawsuit that has lasted over a decade by paying over $200 million to women who have alleged discrimination by the investment company.
The lawsuit was originally filed in 2010 by Christina Chen-Oster and Shanna Orlich. They claimed that the firm fostered an “uncorrected culture of sexual harassment and assault” causing women to either be “sexualized or ignored”. The suit cited both cultural and pay discrimination including frequent client trips to strip clubs, client golf outings that excluded female employees, and the fact that female vice presidents made 21% less than their male counterparts. More women joined in, and in March 2018, a judge ruled that the lawsuit could be class-action but must exclude any claims on sexual harassment.
Now including over 2,800 women who worked in various branches of the investment banking company, the suit was due to come to trial next month. The women are from all through the company, from floor associates to vice presidents. They all testify to having been discriminated against in regard to pay, performance evaluations, and promotions in comparison to their male coworkers.
Government records which are public reveal that female employees at Goldman Sachs earn 20% less than men with the same job titles, more than double the 9.4% national gender pay gap. The $215 million settlement, which works out to just under $80,000 per plaintiff if divided evenly, is only a part of the reparations Goldman Sachs has agreed to. The company will also allow a three-year process of allowing an independent expert to evaluate their performance evaluation process and their paths to promotion.
“Goldman Sachs is proud of its long record of promoting and advancing women and remains committed to ensuring a diverse and inclusive workplace for all our people. After more than a decade of vigorous litigation, both parties have agreed to resolve this matter,” said Jacqueline Arthur, Goldman Sachs global head of human capital management. “We will continue to focus on our people, our clients, and our business.”
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