Compliance Becomes Business Critical

Workplace lawsuits are on the rise, but is it something that you should really be worried about? JPMorgan Chase might say otherwise. 

JPMorgan Chase settled last summer a $5 million dollar class-action lawsuit on behalf of male employees who were denied the same equal parental leave as women. 

The lawsuit alleges JPMorgan Chase’s parental leave policy violated Title VII of the Civil Rights Act of 1964, the Ohio Fair Employment Practices Act along with additional state and local laws prohibiting sex discrimination in the workplace. 

When you read the headline it only tells half the story. When a company falls out of compliance and a lawsuit is filed it’s all hands on deck. They need to break down every aspect of this case with multiple departments and audit trails. The headline read $5 million but it might as well say $7 million after all the resources.

Compared to the myriad of seemingly more complex employment laws floating around, paid parental leave presents itself as a simple policy to share in the company benefits packet. However, the outcome is far less innocent. We’re talking money, time, resources, and an unforgiving loss of essential output from employees pulled into the case.

Reading this may spark something in you (it should). Is it a scoff – because you definitely have it under control and this would never happen to you. Or maybe a shiver – thus prompting you to take a quick glance at your own policies. Whatever it stirs up, you must take effective action. Just one year prior to this case, Estée Lauder reached a similar settlement with EEOC and their discrimination on paternity leave…putting Estee Lauder back $1.1 million.

I’m guessing someone at JPMorgan, in their large HR or executive department, skimmed that headline, and yet less than a year later they found themselves in the same boat as Estée Lauder. This can happen to you too if you are ill-prepared in any part of your leave management process; it’s time to start reviewing your policies and procedures before we start seeing your company in the headlines.

Learn How To Stay Compliant In Your Leave Management Process