Gender Discrimination in the Securities Industry

Many traditionally male-dominated industries have an ongoing bias against female employees, including the securities industry in New York. Wall Street continues to face sex bias and civil rights lawsuits to address gender discrimination. Financial services firms recently settled gender discrimination cases brought by several women plaintiffs, alleging they were denied job opportunities and leadership roles.

Employers can take active steps to reduce the risk of litigation, including claims of sexual harassment or equal pay bias. For legal advice, talk to an employment litigation attorney.

Gender Discrimination Lawsuit Settlements

Six female employees filed a $1.4 billion gender discrimination and equal pay lawsuit against Dresdner, Kleinwort, Wasserstein Services, alleging they were denied promotions and mentoring positions based on gender.

Evidence of discrimination included the small proportion of women in senior jobs, showing the disparate impact of employer policies. The firm settled the claim for an undisclosed amount, while still failing to acknowledge bias and discrimination against women in the financial services industry.

A job applicant filed a charge with the Equal Employment Opportunity Commission (EEOC), alleging they were denied a broker trainee position on the basis of gender. The firm agreed to a settlement, including payment to the plaintiff and money toward a scholarship fund promoting women in the financial industry.

Other major brokerage firms have settled a number of other cases alleging harassment and discrimination. These cases focus on equity in promotion and compensation, as well as more overt forms of discrimination, such as hostile work environments.

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Discriminatory Practices and Gender-Based Pay Disparity

It is unclear whether the suits and negative publicity about gender inequality will change Wall Street. Many employment litigation attorneys say Wall Street firms have an inbred culture of bias against women, but securities firm lawyers say that increased awareness, training, and a rising proportion of women in higher ranks signal a true change in how women in finance are viewed and treated.

Michael Delikat, a partner with Orrick, Herrington and Sutcliffe and chair of the firm’s Employment Law Practice Group, says, “We’re clearly in the second generation of these discrimination cases, which are much more focused on promotional and pay disparity issues as opposed to out-and-out discrimination.”

A number of issues fall under the general heading of sex bias or sex discrimination, according to Title VII, a federal law prohibiting discrimination in employment based on factors such as race, color, religion, sex, and national origin. The law also prohibits treating employees or job applicants differently based on their gender, and setting policies that have a predominantly negative effect on a particular gender.

Workplace Trainings To Address Gender Bias

To stem the tide of expensive and time-consuming litigation, Wall Street firms turn to employment training experts and initiatives to ensure managers and employees know the law and how to comply with it, says Terri M. Solomon, a shareholder with Littler Mendelson. Littler Mendelson is a law firm with more than 30 years of experience in employment and labor law. Solomon conducts training on topics such as effective management and the prevention of workplace harassment.

“Employers are working hard to make sure that they institute the right policies in regard to discrimination,” Solomon says, “and to fully inform their employees about how to implement these policies to avoid problems.”

Have a Clearly Defined Process for Reporting Harassment

Employers must establish a clearly defined process for employees to report harassment without fear of overt or covert retaliation, she says. Because no hard numbers are available to assess how women are progressing into top positions in the financial services industry, it is hard to say how much the suits have been the impetus for change at securities firms.

The fact that the EEOC filed suit in the Oppenheimer case indicates that the federal agency believed the case had “significant public importance,” Delikat says, because the EEOC has limited resources, thousands of cases, and it rarely litigates.

Find Legal Guidance

For legal help in a gender discrimination case, contact an experienced employment law attorney.