Wachovia Corporation, based in Charlotte, North Carolina, has agreed to pay
$5.5 million to settle Department of Labor allegations that the company discriminated
against 2,021 current and former female employees in its compensation practices.
After a corporate management review of the headquarters of federal contractor
First Union National Bank in Charlotte, North Carolina, investigators from the
Labor Department's Office of Federal Contract Compliance Programs (OFCCP) accused
the company of engaging in compensation discrimination against females. First
Union National Bank subsequently merged with Wachovia Corporation.
The Wachovia case, filed in August 2001, is the first class compensation case
filed by the department in a quarter-century.
Under the terms of the settlement, Wachovia will pay 2,021 current and former
female employees $5,500,000 in back pay and interest. The back pay amount is
the fifth largest settlement ever under Executive Order (EO) 11246, which prohibits
discriminatory employment policies for federal contractors.
The company has also agreed to undertake extensive self-monitoring measures
to ensure lawful compensation practices for three years and will correct any
statistically significant disparities which are found to be adverse to women
employees. In addition, Wachovia will ensure compliance with EO 11246 recordkeeping