Jones Day To Gender Discrimination Plaintiffs: You Don't Deserve To Be Paid On The Cravath Scale

Plus they say their compensation system isn't a black box.

The gender discrimination lawsuit brought by seven former associates against Jones Day is really heating up. You may recall a complaint, now amended, alleging a “fraternity culture” at the firm and unequal pay behind the firm’s notorious “black box” compensation system. Now the firm has filed a 115-page answer, and they sure don’t pull any punches.

In the amended complaint, the seven named plaintiffs alleged they were paid less than similarly situated male associates and used charts comparing their compensation to the industry standard or “Cravath scale” to demonstrate that they were underpaid. In response, Jones Day alleges not everyone deserves to be paid on the Cravath scale, and that geography and merit played a role in plaintiffs’ compensation:

“Plaintiffs’ pay discrimination claims are based on the misconceived and legally baseless notion that all lawyers in all geographic markets have, at all times over the past decade, been entitled to so-called ‘Cravath scale’ regardless of the quality of their performance or their productivity.”

To further this argument, the answer singles out plaintiffs Nilab Rahyar Tolton and Katrina Henderson as being undeserving of market compensation. As reported by Law.com:

Henderson, according to the response, never cracked 1,100 hours of client billable work in any year and “struggled with basic tasks.” Tolton “received below-average reviews in four of her last five years” and saw her hourly billings plunge in two years after she took leaves.

“While that is consistent with Ms. Tolton’s allegation that she joined Jones Day because she thought she could ‘do the minimum’ and protect her social life, it is not the type of performance that would have qualified her for ‘Cravath pay’ at any firm,” Jones Day said.

Additionally, Jones Day tries to turn the allegations of a fraternity culture against the plaintiffs, saying their perceptions of a hostile work environment were “entirely built on stereotypical tropes.”

“This warped portrayal of women as weak, powerless, and incapable of making their own choices or taking responsibility for their own actions is as offensive as it is wrong and certainly does not accurately describe the women lawyers at Jones Day,” the firm said.

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But by far my favorite argument is the one where Jones Day says their compensation system isn’t a black box:

[T]he firm disputed that its compensation system could be characterized as a “black box,” noting that it publishes detailed information on its evaluation and compensation processes on its website and details them internally within the firm. Furthermore, midlevel and senior-level associates participate as evaluators of more junior associates, observing elements of the process from both sides.

Now, I’m not commenting on the truthfulness of the allegations in the complaint, nor am I opining on the legal arguments in either side’s filings. But. But… as someone who has personally spent a lot of time trying to ascertain the compensation landscape at the firm, I was pretty incredulous reading that.

Just for fun, I asked my fellow Above the Law editors their initial reactions upon hearing this, and (following the laughter) they delivered.

Joe Patrice:

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There are plane crashes where the black box wasn’t as impenetrable as Jones Day’s comp.
Staci Zaretsky answered in picture form, which I quite appreciated:

Elie Mystal:

Jones day is so used to gaslighting for the president they think we’re as dumb as Trump voters.

For my part, I went back to this classic over-lawyerly response from Bill Clinton:

Is Jones Day’s compensation system a black box?

We’ll continue to follow the ups and downs of this case as they develop.

Earlier coverage: Jones Day Hit With Explosive Gender Discrimination Case
Jones Day Facing Second Class-Action Lawsuit Over ‘Fraternity Culture’ Of The Firm
Partner Whose Behavior Features Prominently In Jones Day Gender Discrimination Lawsuit Is Out At The Firm
Jones Day Wants Gender Discrimination Plaintiffs To Reveal Themselves To The Public
Plaintiffs Throw Shade At Jones Day In Gender Discrimination Lawsuit
Gender Discrimination Lawsuit Against Jones Day Gets Yet Another Plaintiff
Gender Discrimination Lawsuit Against Jones Day Dropped — Well, One Of Them At Least
Jones Day Gender Discrimination Case Spreads To New York
Amended Gender Discrimination Case Brings The Real Scoop On Jones Day Compensation


headshotKathryn Rubino is a Senior Editor at Above the Law, and host of The Jabot podcast. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).