Archived News Release — Caution: Information may be out of date.

U.S. DEPARTMENT OF LABOR

ESA Press Release: CoreStates Enters into $1.5 Million Settlement Agreement with U.S. Labor Department [04/17/1998]

For more information call: (215) 596-1147

Secretary of Labor Alexis M. Herman announced today that CoreStates Financial Institution (CoreStates), headquartered in Philadelphia, has signed a conciliation agreement with the U.S. Labor Department's Office of Federal Contract Compliance Programs (OFCCP) which will address past practices of pay discrimination against women and minority bank employees.

Following a corporate management review conducted by its Philadelphia district office, OFCCP concluded that CoreStates did not apply its compensation policies and procedures uniformly, leading to a pattern of discriminatory treatment of females and minorities.

"This administration is committed to equal opportunity in the workplace," Herman said. "Discrimination has no place at work. Our goal is to guarantee every working American a quality workplace, free of discrimination. And equal employment opportunity is not only in America's best interest, it makes good business sense."

The agreement calls for $1,150,434 in back pay -- the largest such settlement in the history of the OFCCP -- and $334,115 in salary adjustments to be distributed and awarded to 142 individuals: 76 women and 66 minorities.

Bernard Anderson, assistant secretary of labor for the Employment Standards Administration, said: "The settlement reflects our commitment to enforce equal employment opportunity in the workplace and ensure that employees of federal contractors are paid in a fair and equitable manner. OFCCP will take firm and fair enforcement when it finds cases of noncompliance with the law."

In addition to the payment of the back wages, CoreStates will continue to conduct salary analyses for all of its salary grades. The bank will compare the salaries of females to males, as well as the salaries of minorities to non-minorities. It will use the information to remedy any problems in the company's Affirmative Action Plan.

Anderson said that with the execution of this conciliation agreement, CoreStates' affirmative action programs are in full compliance with the requirements of federal government contractors.

Part of the Labor Department's Employment Standards Administration, OFCCP is responsible for enforcing Executive Order 11246 and other laws requiring federal contractors to provide equal employment opportunity without regard to race, gender, color, religion, national origin, disability or Vietnam-era veteran status.

Archived News Release — Caution: Information may be out of date.