The 9th Circuit Court of Appeals ruled Monday that salary history is not an acceptable reason for pay differences under the Equal Pay Act (EPA), even when used in conjunction with other factors. The EPA first became law in 1963 and prohibits the payment of different wages to men and women who do work that requires equal skill, effort, and responsibility under similar working conditions.
Employers, including the defendant in this case, have often used salary history to help determine a new employee’s starting salary, and assumed that this would count as “any factor other than sex.” The court did not claim that this is an unreasonable reading of the law. Rather, it said that such a reading is contrary to the point of the law, as an employee’s past salary is likely to be impacted by gender-based pay discrimination.
9th Circuit Rules Salary History Not an Acceptable Reason for Pay Discrepancies
by Horizon Payroll Solutions on April 12, 2018