$54 Million Settlement Includes Anti-Bias Training, Complaint Database, Pay and Promotion Analysis

The record settlement announced by the Equal Employment Opportunity Commission and Morgan Stanley ending a class action sex discrimination lawsuit will require management and employee anti-discrimination training and period compensation and promotion analysis. According to the EEOC, the investment firm will, among other things, "appoint an internal ombudperson and an outside monitor; implement management training on the federal anti-discrimination laws; perform promotion and compensation analyses; maintain a complaint data base; and implement programs to address the promotion and retention of women." Additionally, at least $2 million of the settlement will fund diversity programs to "enhance the compensation and promotional opportunities for female employees."

The lawsuit on behalf of a class of female officers and women eligible for officer promotion in the firm's Institutional Equity Division (IED) was filed on September 10, 2001. Allegations included discrimination with respect to promotion, compensation and other terms, conditions and privileges of employment in violation of Title VII of the 1964 Civil Rights Act.

Six sections of the settlement agreement contain the specific non-monetary terms: Section 10: Management Training; Section 11: Anti-Discrimination Training; Section 12: Policies; Section 13: Complaint Database; Section 14: Promotion and Compensation Analysis; Section 15: Exit Interviews; and, Section 16: Programs To Address the Retention and Promotion of Women in IED. The settlement order contains a specific time frame for each phase of the process, beginning within 60 days of the order becoming final. More information on the terms of the settlement is available on the EEOC's website.

Workplace training continues to play an increasingly prominent role in the resolution of employment litigation and in the decisions of the courts on the liability of employers for harassment and other forms of discrimination and unlawful workplace conduct. The verdict seems to be clear: either proactively conduct workforce training to educate managers, supervisors and employees about the principles and practice of equal employment opportunity and prevent disputes, OR, reactively defend allegations of discriminatory treatment and absorb the resulting costs including the court mandated training of managers and employees.

The Jackson Lewis Workplace Law Institute is designed to help employers comply with the myriad of employment laws and regulations, avoid workplace disputes, resolve employee relations problems, and satisfy legitimate employee expectations. Training topics include:

  • Affirmative Action || OFCCP
  • Discipline and Firing Discrimination
  • Dispute Resolution
  • Drug Testing and Substance Abuse Management
  • Employee Benefits
  • Harassment
  • Hiring
  • Immigration
  • Investigations
  • Labor Relations
  • Non-compete Issues
  • OSHA
  • Reductions in Force
  • Wage || Hour Issues
  • Workplace Injury and Disability Management
  • Train the Trainer, and Other Workplace Issues