A lawsuit filed by Phillips & Associates, PLLC Partner Michelle Caiola on behalf of former RBC Capital Markets Managing Director Jennifer Caruso-Jones has drawn major media attention, including recent coverage in Bloomberg Law and HRD America.
The complaint, filed in Manhattan federal court, details allegations of systemic gender and pregnancy discrimination within the bank, including what the suit calls a longstanding “pregnancy tax” that penalized new mothers through reduced bonuses and diminished advancement opportunities.
As reported by Bloomberg Law and HRD America, the complaint alleges that RBC maintained a written maternity leave policy stating that bonuses for women taking up to 16 weeks of leave would be prorated based on the length of their absence. Employees taking other types of leave, including disability leave, were not subject to the same deductions.
After returning from maternity leave in 2019, Ms. Caruso-Jones alleges her compensation was cut by more than 30%, despite excellent performance reviews. The suit also asserts that several other senior women experienced similar reductions, including one Managing Director whose bonus was allegedly cut after each of three maternity leaves before she left the firm in early 2023.
The complaint further describes significant gender disparities in senior leadership:
- In 2023, only 8 of 141 Managing Directors at the firm were women.
- Six of the bank’s eight female MDs allegedly exited in 2023 alone.
- Since 2020, only 3 of 42 newly hired Managing Directors were women.
The allegations also extend to retaliation. After Ms. Caruso-Jones returned from a four-month disability leave in 2022, she claims she was excluded from meetings, sidelined from client work, and encouraged to consider “the next stage” of her career—comments allegedly tied to her caregiving responsibilities and health. She was terminated in October 2023 and contends that RBC falsely labeled her departure as a “retirement,” harming her credibility within the industry.
Both outlets reported that the lawsuit asserts claims under federal and state civil rights statutes. RBC has not yet responded, and no court rulings have been issued at this stage.
You can read the full coverage here:
- RBC Managing Director Sues Alleging Bias Against Women, New Moms (Bloomberg Law)
- Former MD sues RBC Capital Markets over maternity leave 'pregnancy tax' (HRD America)
Michelle Caiola is one of the nation’s most respected employment discrimination litigators. A Partner at Phillips & Associates, PLLC, Michelle has decades of experience handling complex gender- and pregnancy-discrimination matters and previously served as an attorney with the U.S. Equal Employment Opportunity Commission, where she litigated several landmark cases, including the $54 million Morgan Stanley glass-ceiling settlement.
Throughout her career, Michelle has advocated for employees in finance, technology, media, healthcare, and other major sectors, with a focus on systemic bias and high-impact litigation. She has been recognized by Super Lawyers and numerous other legal organizations for her work on behalf of employees.