An M&T Bank Corp. subsidiary will pay $700,000 to settle a disability discrimination lawsuit brought against Hudson City Savings Bank, stemming from allegations that predated M&T's purchase of the bank in 2015.
Wilmington Trust, the M&T subsidiary, will pay the $700,000 to settle the case with the U.S. Equal Employment Opportunity Commission, because New Jersey-based Hudson City was merged into Wilmington Trust.
In a lawsuit filed in 2017, the EEOC alleged Hudson City failed to accommodate branch employees who notified the bank of a disability or a need for accommodation, and that Hudson City instead required them to either provide a certification from a medical provider stating they could work with "no restrictions" or else be placed on leave.
In a statement about the settlement, M&T said the case "involved a legal claim that we inherited from Hudson City about its practices prior to the merger. The allegations in this case did not involve a Wilmington Trust or M&T policy – they were related to an apparent practice at Hudson City prior to the merger."
The EEOC contended M&T assumed liability for the alleged violations through the purchase of Hudson City.