Wachovia Settles Pay Discrimination Case

September 27, 2004 (PLANSPONSOR.com) - Wachovia Corporation has agreed to a $5.5 million settlement with the government in connection with charges that a recently acquired bank discriminated against women in pay scales.

>The US Department of Labor (DoL) announced the pact disposing of compensation discrimination charges against 2,021 current and former female employees for six years.

>According to the announcement, federal officials conducted a corporate management review of the headquarters of federal contractor First Union National Bank and discovered the differing pay practices. First Union subsequently merged with Wachovia .

>Under the agreement, Wachovia will pay 2,021 current and former female employees $5,5 million in back pay and interest. The back pay amount is the fifth largest settlement ever for federal contractors. Large settlements in other years include Harris Bank, $14 million; Uniroyal, $10 million; Honeywell, $6.5 million; and Boeing, $4.5 million.