Deloitte has failed to persuade a US federal court to dismiss a proposed class action alleging that its performance-management system disadvantages employees who take parental, pregnancy or pregnancy-disability leave.
The ruling is the latest development in a case Big4News examined in detail in July.
The lawsuit was brought by Joanne Barela, a former senior manager in Deloitte Consulting’s Human Capital Consulting practice. She alleges that employees who took protected leave were assessed against colleagues who had worked for the full year, potentially depressing their performance ratings and, in turn, their pay.
Deloitte contested the claims and in June moved to dismiss Barela’s amended complaint, as well as seeking to strike or redefine the proposed class allegations.
But on 19 August, a California federal court refused to dismiss the proposed class action.
Barela’s complaint includes claims under the Family and Medical Leave Act, Title VII of the Civil Rights Act, the Pregnant Workers Fairness Act and California employment law. The case was filed in the US District Court for the Northern District of California under case number 3:26-cv-03051.
The ruling does not establish that Deloitte discriminated against Barela or other employees. It means the case has survived an important early challenge and can continue. The proposed classes have not yet been certified.
Barela is seeking to represent nationwide and California classes of Deloitte employees who took parental, pregnancy or pregnancy-disability leave.
The case also illustrates a broader issue examined this week by Big4News in Why companies should publish the parenthood gap: whether employers should be judged not only by the parental-leave policies they offer, but by what happens to employees’ pay, retention and progression after they use them.
Deloitte has previously said it vehemently disagrees with the allegations and intends to defend itself vigorously.
The allegations remain contested. No court has ruled that Deloitte unlawfully penalised employees for taking parental or pregnancy-related leave, and the proposed classes have not been certified.
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About the author: Claudine Cassar is the founder and editor of Big4News, covering audit, consulting, regulation and governance across Deloitte, PwC, EY and KPMG.