US Fed Board disciplined nine staff for sexual harassment in 2020-2023, document shows

By Douglas Gillison

(Reuters) - The U.S. Federal Reserve Board received 11 complaints against individuals alleging sexual harassment between 2020 and 2023 and disciplined nine staff members as a result, firing four of them, according to a document the central bank released to Reuters last month.

The disclosure, first reported by Reuters, provides rare insight into how the central bank has handled sexual harassment cases that have not resulted in formal complaints which agencies are legally obliged to disclose under federal discrimination laws.

Between 2020 and 2023, the Board issued "last chance" warnings to four staff members for sexual harassment and fired another four for sexual harassment "and other work concerns," according to the list, which Reuters obtained under a Freedom of Information Act request filed last year.

The Board also disclosed three other sexual harassment complaints. In two of those cases, the Board said it took no action because one allegation "wasn't supported," and the other was made against an individual who was not a Fed employee.?

Another staff member was "counseled on unprofessional communication," according to the list of disciplinary actions taken under the Board's harassment policy. It did not provide more details.

"Sexual harassment has no place in our society and it is prohibited at the Federal Reserve," said a spokesperson for the Board, which had more than 3,100 employees as of last year. "We have a zero-tolerance policy which prohibits all forms of harassment, even if the behavior does not violate the law."

While federal regulators must disclose the number of Equal Employment Opportunity (EEO) harassment complaints made against the agency under anti-discrimination laws, they are not generally required to disclose disciplinary actions taken against individuals in the absence of such formal complaints when the reported behavior may not violate the law.?

As a result, it is not clear how the Fed data released to Reuters compares with that of other agencies.

When it comes to EEO complaints, the Fed appeared to compare favorably. It reported no such complaints for sexual harassment during 2020 to 2023, according to its annual reports. Among nine federal financial regulators, only three others also reported no EEO complaints in that time.

REPORTING MISCONDUCT

Wall Street Journal reports last year revealing widespread misconduct at the Federal Deposit Insurance Corporation (FDIC) thrust the issue of sexual harassment at the bank agencies into the spotlight, ultimately forcing FDIC Chair Martin Gruenberg to promise to step down.

A May investigation said that more than 500 people had come forward to describe an environment of pervasive sexual misconduct, racism and bullying. Yet between 2020 and 2023, the agency only reported five EEO complaints for sexual harassment.?

The Fed data released to Reuters further underscores how EEO reports are unlikely to tell the full story.?

Employment lawyers representing federal workers say there are several reasons why sexual harassment cases could result in disciplinary action without producing formal EEO complaints.

Before they can file such complaints, federal workers are required to undergo at least 30 days of counseling during which EEO counselors can attempt to resolve the matter informally, according to the Equal Employment Opportunity Commission.

Ariel Solomon, an employment lawyer whose clients include government workers making sexual harassment complaints, also said that the aim of the EEO complaint process is to allow workers to seek redress from their employers, rather than to discipline perpetrators. That means incidences of harassment need not always result in formal complaints.

"I think it's fair to say that just because the data hasn't been produced doesn't mean there isn't sexual harassment," she said, referring to federal agencies' EEO data. "Certainly, we know that some of the complaints were severe enough that a termination was absolutely appropriate."?

Following the WSJ FDIC report in November 2023, Fed Director of Supervision and Regulation Michael Gibson, and Marta Chaffee, a senior associate director in the same division, sent staff emails warning that similar conduct would not be tolerated at the Fed, according to separate records Reuters also obtained under the Freedom of Information Act.

"Sexual harassment and retaliation have no place on any team," Chaffee wrote.

(Reporting by Douglas Gillison; editing by Michelle Price and Nick Zieminski)