Alaska Employment Law

Female brokers at Smith Barney will be paid $33 million by Citigroup, Inc., for the company’s continuing to discriminate after a 1997 settlement of a federal court sexual harassment case.  The suit filed in 2005 did not allege harassment, but contended the company did not live up to the promises made in the earlier settlement.  As many as 2,500 current and former Smith Barney employees nationwide, women brokers who worked the company starting in 2003, are eligible to share in the settlement and new procedures proposed to increase opportunities for women.

The plaintiffs alleged that branch managers steered accounts to male brokers and then retaliated when the women complained.  The company agreed to revise its procedures in distributing accounts to give weight to recent performance; also to fairly distribute walk ins and accounts from retiring brokers.  There will be an independent diversity monitor who will report to the CEO, posting of branch manager positions, and management diversity training; branch managers will be rewarded for increasing diversity.  Needless to say, the settlement contains a clause that the company denies discrimination or any wrongdoing.

H/T  AATL EClips, Bloomberg.com