Salomon Settles EEOC Bias Suit

Investment bank Salomon Smith Barney has settled a lawsuit filed by the Equal Employment Opportunity Commission that accused the securities firm of discriminating against a group of black American, Haitian, Nigerian and West Indian employees, the federal agency said.

Salomon agreed to pay the five employees named in the suit a total of $635,000, according to a news release issued by the EEOC. In addition, the investment bank agreed to ensure equal employment opportunities for all its employees.

Four of the five, all computer operators at Salomon’s data center in Manhattan, still work at the investment bank.

In its suit, which was filed in September, the EEOC claimed Salomon discriminated against the workers by failing to promote them, paying them less than other similarly qualified employees, denying them salary increases and subjecting them to offensive comments. The unfair treatment was alleged to have occurred because of the employees’ nationalities.

Salomon agreed to settle the suit but denied breaking any laws, according to a memo distributed to data center employees.