State Street Corp. allocates $4.2M for future pay adjustments to resolve alleged gender wage discrimination

BOSTON – The U.S. Department of Labor announced that its Office of Federal Contract Compliance Programs and State Street Corp., a federal financial services provider, have entered into a conciliation agreement in which the employer has agreed to allocate $4.2 million for future pay adjustments to resolve alleged compensation discrimination.

Routine OFCCP compliance evaluations at four Boston-area State Street establishments initially raised concerns about base pay and bonuses for female managing directors, and OFCCP determined that the employer’s actions violated Executive Order 11246, which prohibits federal contractors from discriminating in employment based on race, color, religion, sex, sexual orientation, gender identity or national origin.

To resolve the findings, State Street has agreed to set aside $4.2 million for future pay equity adjustments to make sure its compensation practices and policies are free of discrimination. As part of the agreement, the employer will also work with a consultant to conduct a pay equity analysis for all State Street establishments nationwide, evaluating base pay and total compensation for all employees. The employer has already made at least $483,000 in pay equity adjustments to female managing directors.

“Our conciliation agreement with State Street Corp. illustrates the Office of Federal Contract Compliance Programs’ commitment to bridge gender wage gaps and successfully achieve pay equality for women in the nation’s workforce,” said Office of Federal Contract Compliance Program Acting Director Michele Hodge. “Federal contractors like State Street Corp. must make certain its employment practices comply with all federal law, including those that seek to eliminate gender-based barriers to equal employment,” added Hodge.

View the conciliation agreement.

State Street Corp. is a global financial services and bank holding company with contracts to provide financial services to the Pension Benefit Guaranty Corp. Since 2020, State Street Corp. has held more than $69 million in federal contracts.

In addition to Executive Order 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973, and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. Together, these laws prohibit employment discrimination.