Parties Indicate Settlement in Lawsuit Over Sham Diversity Hiring Practices at Wells Fargo

Large banks and other financial institutions have a duty to be scrupulously honest. This does not just apply to their account statements, but also to their business practices and how those practices are described to investors. In 2020, Wells Fargo promoted what they claimed to be a major effort to increase diversity in their workplace. As time passed however, candidates who did not get jobs with the major bank alleged that they were victims of a scheme that was based on sham interviews. 

Reports say that Wells Fargo has agreed in principle to settle a lawsuit alleging the bank misrepresented and mishandled aspects of its Diversity Equity and Inclusion (DEI) initiatives. Plaintiffs say that the company had pledged to fill half of its high-paying positions (defined as $100,000/year or more) with individuals from traditionally underrepresented groups. Qualifying applicants included women, veterans, LGBTQ individuals and people with disabilities. 

The lawsuit claims that numerous candidates interviewed for jobs that didn’t exist or were already filled. Furthermore, plaintiffs alleged that complaints about the meaningless meetings were brought to the top level of Wells Fargo management. The bank denied the accusations, but an attempt to have the case dismissed by summary judgment failed. 

At this point, information about the diversity hiring program is no longer on the Wells Fargo website. Changes regarding the perception of DEI efforts among government officials and private employers have cast considerable doubt on the legality of campaigns such as the Wells Fargo 50 percent initiative. Even where a specific quota is not in place, there are many situations where attempts to address historical bias might trigger present-day unlawful discrimination.

No matter what your personal background might be, if you applied for a job and something didn’t feel authentic about the interview, it might be a sign of illegal activity. Even in cases without publicly announced DEI campaigns, it’s possible you were brought in for appearance’s sake rather than because the company was seriously considering hiring you. 

Kardell Law Group represents clients in a full range of discrimination cases. We have the skill and experience to get to the truth even when employers allege that they were acting within the law. Please contact us to discuss your situation and learn about your legal options.