Businesses in Georgia may be sensitive to the fact that even in the 21st century, gender bias still exists in the workplace. Regardless of the fact that many women are in the same positions as men, they still make less than their male counterparts. This is at the heart of some business litigation that Bank of America recently settled for $39 million. The current case is led by five women, but represents some 4,800 women.
The lawsuit alleges that men are paid more then the women in the same positions. Moreover, there are claims that men are also given the best accounts and more support from the company. This causes what has been dubbed as the “cumulative advantage” effect. Since the men have better clients and support, their earnings end up increasing at a faster and steeper rate than the women.
The settlement agreement is not only monetary and is for three years. Bank of America has agreed to hire a consultant to examine how teams are put together and accounts are divided up. The bank will also hire an independent keep an eye on improvements that Bank of America will make to its employment practices.
Bank of America is pleased with the settlement brokered in this business litigation. It should be noted that an admission that it has done anything wrong will not be included in the settlement. Many Georgia businesses know that just because a business makes the decision to settle a lawsuit does not necessarily mean that the business will be required to admit wrongdoing. There are times when a settlement will serve both sides better than a long drawn out court battle.
Source: Reuters, Bank of America, Merrill in $39 million gender bias settlement, Jonathan Stempel, Sept. 6, 2013