Bank of America Fined US$2.2 Million Over Racial Discrimination

Bank of America has been ordered to pay nearly US$2.2 million in restitution for racial discrimination against more than 1,100 African-American job seekers, the U.S. Department of Labor announced on Monday.

Background

The verdict comes after nearly two decades since an administrative complaint was first filed against the company in 1997. The Labor Department had conducted a review of the bank in 1993 and found “systematic hiring discrimination” against African-Americans.

Systematic Racial Discrimination in Hiring Practices

African-American applicants hoping to secure entry-level administrative jobs and teller positions faced discrimination at the company’s offices in Charlotte, North Carolina, at various times between 1993 and 2005. The judge ordered the ruling after it was found that the bank applied “unfair and inconsistent” selection criteria resulting in the rejection of qualified black job seekers.

The Ruling

As per the Department of Labor's ruling, US$964,033 will be awarded to 1,034 applicants who were rejected for jobs in 1993, and US$1,217,560 to 113 applicants rejected between 2002 and 2005. Bank of America has also been ordered to extend suitable job offers to 10 former applicants as positions become available.

Two Similar Cases

In August, the bank agreed to pay US$160 million to black financial advisers at Merrill Lynch who claimed that racial discrimination led them to be kept off lucrative assignments and that they were paid less than their white counterparts. The allegations came from before Bank of America acquired the investment bank in 2009. Earlier this month, the bank again agreed to pay US$39 million to women who worked at Bank of America and Merrill Lynch brokerages claiming they were not given an equal chance to succeed.

Bank of America, the second-largest U.S. lender by assets, said it is examining the recommended court order.

Reference Links:

1. http://money.cnn.com/2013/09/24/news/companies/bofa-racial-discrimination/index.html?iid=SF_BN_LN
2. http://www.wltx.com/news/article/250503/2/Bank-Of-America-Fined-22-M-For-Racial-Discrimination
3. http://www.newsobserver.com/2013/09/23/3222193/bank-of-america-ordered-to-pay.html
4. http://www.bloomberg.com/news/2013-09-24/bofa-told-to-pay-2-2-million-in-race-bias-case-spanning-decades.html
5. http://www.nydailynews.com/news/national/bank-america-discriminated-blacks-pay-2-2-million-article-1.1465391
6. http://www.theaustralian.com.au/business/latest-news/bank-of-america-to-pay-for-discrimination/story-e6frg90f-1226725956213