Consumer Financial Protection Bureau settles employee discrimination lawsuit for $6M

Consumer Financial Protection Bureau settlement overview:

• Who: The Consumer Financial Protection Bureau has reportedly reached a $6 million class action settlement that would provide compensation to 85 Black and Hispanic class members if approved.
• Why: If approved, the settlement will resolve a class action lawsuit alleging the CFPB discriminated against and retaliated against Black and Hispanic employees.
• Where: The Consumer Financial Protection Bureau discrimination settlement was reached in the District of Columbia federal court.

The Consumer Financial Protection Bureau has reportedly reached a $6 million class action settlement with Black and Hispanic employees who say the bureau discriminated against them.

The Consumer Financial Protection Bureau settlement will resolve a class action lawsuit filed in 2018 by plaintiffs Heynard Paz-Chow and Carzanna Jones.

The plaintiffs, who are Hispanic and Black, respectively, each claim that they experienced discrimination and retaliation at the Bureau and initiated Equal Employment Opportunity (EEO) counseling with the Bureau’s Office of Civil Rights to address their experiences.

Separately, Paz-Chow and Jones each filed a class EEO administrative complaint, but both complaints were denied class certification.

In 2018, the two jointly filed the Consumer Financial Protection Bureau discrimination class action lawsuit alleging that the CFPB violated Title VII of the Civil Rights Act of 1964 by discriminating against and retaliating against Black and Hispanic Consumer Response Specialists.

Paz-Chow joined the bureau in 2011, while Jones joined a year later in 2012.

CFPB discrimination involved lower pay for Black, Hispanic employees, plaintiffs allege

Paz-Chow and Jones allege that Black and Hispanic employees were paid lower wages than non-minority employees because of their race and/or ethnicity.

Class members of the Consumer Financial Protection Bureau settlement include Black/African American and/or Hispanic CFPB employees who served in certain non-supervisory positions assigned to the Office of Consumer Response in certain pay bands between Feb. 13, 2011 and April 19, 2022.

The settlement documents note that there are 85 class members who would be eligible for monetary payments if the settlement is approved.

Under the terms of the Consumer Financial Protection Bureau settlement, all eligible class members will automatically receive a Time in Pay Band Award without filing a claim form. Discretionary awards will only be granted to eligible class members who submit a claim form. 

The amount each class member is eligible to receive from the proposed settlement will be determined based on how long they worked in certain pay bands.

On Aug. 31, the plaintiffs asked a District of Columbia federal judge to approve the settlement, which they describe as “fair, reasonable, and adequate.”

Earlier this year, the CFPB disclosed that it experienced a data breach that may have compromised consumers’ sensitive information.

What do you think about the Consumer Financial Protection Bureau settlement? Let us know in the comments!

Read About More Class Action Lawsuits & Class Action Settlements:

• Court rules employment discrimination lawsuits can be brought under wider wage of circumstances
• Astros ADA seating lawsuit sent to arbitration
• NCAA class action alleges history of discrimination against Black student-athletes
• Feds investigate HSBC over lending discrimination claims