Steele v. Chopra

CourtDistrict Court, District of Columbia
DecidedDecember 19, 2025
DocketCivil Action No. 2024-0763
StatusPublished

This text of Steele v. Chopra (Steele v. Chopra) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Steele v. Chopra, (D.D.C. 2025).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

CHERYL STEELE,

Plaintiff,

v. Case No. 24-cv-763 (CRC)

RUSSELL VOUGHT, Acting Director, Consumer Financial Protection Bureau,1

Defendant.

MEMORANDUM OPINION

The Consumer Financial Protection Bureau (“CFPB” or “the Agency”) hired Cheryl

Steele, a Black woman, as an Examiner in its Northeast region. To determine her base salary,

the CFPB scored and weighted her prior work experience based on whether it was directly

related to the Examiner position. The Agency’s compensation team concluded that while Steele

had considerable work experience overall, she lacked experience performing duties similar to

those required of an Examiner. Accordingly, the Agency offered her an annual base salary of

$64,823. After the Agency denied Steele’s request for a higher salary, she accepted the job offer.

Years later, Steele filed this lawsuit, alleging that the Agency engaged in both race and

sex discrimination by offering her a lower base salary than several white and/or male Examiners,

in violation of both Title VII of the Civil Rights Act of 1964 (“Title VII”) and the Equal Pay Act

of 1963 (“Equal Pay Act”). The Agency now moves for summary judgment, claiming that there

is no genuine dispute that her salary was based on her prior work experience, not her race or sex.

For the reasons discussed below, the Court will grant the Agency’s motion.

1 By substitution pursuant to Fed. R. Civ. P. 25. I. Background

A. Steele’s Initial Salary Determination

Steele applied to be an Examiner at the CFPB in 2014. See Declaration of Lindsay

Bacon (“Bacon Decl.”), Ex. 1 at 5. As an Examiner, she would assess whether financial

institutions adhered to consumer protection laws and ensure that they maintained adequate

compliance programs. See id. at 3. A few months after Steele submitted her application, the

Agency selected her for a CN-40 Examiner position in the Northeast region.2 See Bacon Decl.

¶ 2; Pl.’s Opp’n to Def.’s Mot. for Summ. J. (“Pl.’s Opp’n”), Ex. 5 at 28. She was offered an

annual base salary of $64,823.3 Pl.’s Opp’n, Ex. 5 at 28.

The Agency set Steele’s base salary using its standard “pay setting tool” for external

hires. Declaration of Cyrus Mostaghim (“Mostaghim Decl.”), Ex. 1 at 394; id., Ex. 3 at 274.

The pay setting tool calculated a candidate’s base salary by quantifying three factors: Directly

Related Experience, Overall Professional Experience, and Candidate Skill Set. See Mostaghim

Decl. ¶ 5; id., Ex. 2 at 264–65. Directly Related Experience referred to the “[n]umber of years of

experience at a level equivalent to the position performing the duties and responsibilities

described in the position description.” Id., Ex. 3 at 274. Overall Professional Experience

included the “[n]umber of years of overall experience working in an industry or content area

comparable to the position to which the candidate has applied.” Id. Any Directly Related

Experience also counted as Overall Professional Experience. Mostaghim Decl. ¶ 22. Candidate

2 “CN-40” is one of the “CN” pay bands that the CFPB used to set employee salaries. In 2015, a salary within the CN-40 pay band was equivalent to a salary between the GS-8 and GS- 10 levels in other parts of the federal government. See Declaration of Cyrus Mostaghim, Ex. 4. 3 Steele’s base salary was subject to a locality adjustment. See Sohn Decl., Ex. 6.

2 Skill Set measured “[t]he skill set of the candidate and the degree to which those skills can be

transferred to the level identified in the position description.” Id., Ex. 3 at 274.

Each candidate received one of four “quartile scores” for each factor based on his or her

level of experience or skill set. For example, a candidate with fewer than two years of Directly

Related Experience fell within Quartile 1 for that factor, while a candidate with more than eight

years of Directly Related Experience fell within Quartile 4. Id. A candidate then received an

“overall quartile score” based on a weighted average of the quartile scores for each factor.4 Id. at

275. The overall quartile score determined where a candidate’s salary fell within a CN pay

band.5 Id., Ex. 2 at 264.

When the CFPB selected Steele to be an Examiner, a staffing consultant for the Agency’s

Office of Human Capital provisionally completed portions of her pay-setting form. See Bacon

Decl. ¶ 2; Mostaghim Decl. ¶ 6. The consultant’s “impression” was that Steele should be placed

in Quartile 2 for Directly Related Experience, Quartile 3 for Professional Experience, and

Quartile 3 for Candidate Skill Set, yielding an overall quartile score of 2.6. Bacon Decl. ¶ 3.

The consultant sent the pay-setting form, along with Steele’s resume and the position

description, to the Agency’s compensation team. Id. ¶ 2; id., Ex. 1. Neither the consultant nor

the compensation team knew Steele’s salary from her then-current employer. Bacon Decl. ¶ 4;

Mostaghim Decl. ¶ 28.

4 Directly Related Experience accounted for 40 percent of a candidate’s overall quartile score, Overall Professional Experience accounted for 30 percent, and Candidate Skill Set accounted for 30 percent. See Mostaghim Decl., Ex. 3 at 274. 5 Each CN pay band was divided into four quartiles. See Mostaghim Decl., Ex. 4. For example, a candidate with an overall quartile score of 2.5 fell within the midpoint of Quartile 2. See Mostaghim Decl. ¶ 11.

3 The CFPB’s compensation team then used Steele’s resume and the position description to

independently calculate her overall quartile score. Mostaghim Decl. ¶ 20. The team first

credited her with 1.25 years of Directly Related Experience (i.e., Quartile 1) based on her prior

employment as a “Consumer and Business Banker.” Id. ¶ 21. She was then credited with 10.25

years of Overall Professional Experience (i.e., Quartile 4) based on her experience as both a

banker and an economist with the Department of Agriculture (“USDA”). Id. ¶ 22. Finally, she

was credited with “high skill levels” for Candidate Skill Set (i.e., Quartile 3). Id. ¶ 23. Steele’s

overall quartile score was 2.5, placing her base salary at $64,823, the midpoint of Quartile 2 for

the CN-40 pay band. Id. ¶ 24; id., Ex. 1 at 394; id., Ex. 4.

The compensation team then compared Steele’s base salary to the salaries of two other

CN-40 Examiners “who were her closest peers based on experience.” Mostaghim Decl. ¶ 29.

One Examiner received approximately $2,500 more in base salary because she had “more overall

creditable experience” and “more experience related to the examination of financial institutions,”

while the other received approximately $5,500 less because he had “less overall creditable

experience.” Id. Accordingly, the compensation team decided to not adjust Steele’s base salary.

Id. ¶ 30; id. Ex. 1.

After the CFPB extended the job offer to Steele, she wrote back to request a base salary

between $76,378 and $84,017. Pl.’s Opp’n, Ex. 5 at 33. She cited her education, her years of

experience as an economist, and the skills that qualified her for the position. Id. at 33–36. She

also noted that she reached the GS-12 level during her prior employment in the federal

government, which was equivalent to the CN-52 pay band. Id.; see Mostaghim Decl., Ex. 4.

Steele’s request was forwarded to an assistant regional director for the Northeast region.

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