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icemiller.comicemiller.com
#PayMeToo
Is Equal Pay Liability Lurking
in Your Company’s Future?
Ryan M. Poor
317 236 5976
ryan.poor@icemiller.com
Germaine Winnick Willett
317 236 5993
germaine.willett@icemiller.com
icemiller.com
The trend: pay-related
litigation is on the rise.
Plaintiff-side attorneys
are exploring class
actions.
Newsworthy settlements
increase awareness of
the claim.
Unequal Pay
icemiller.com
Equal Pay Act claims boil down to:
Does pay disparity exist between the plaintiff and just
one similarly situated employee of the opposite sex?
Do the employees being compared have substantially
similar duties?
Can the employer show that the disparity is due to a
reason other than gender?
“Even a dollar’s difference based on sex
violates both Title VII and the Equal Pay Act.”
King v. Acosta Sales & Mktg.
Unequal Pay
icemiller.com
Unequal Pay
Working Nine to Five…
icemiller.com
Unequal Pay
Is there a difference in
pay – Why?
A legitimate reason for
pay disparity is one
based on a reason
other than gender (or
other protected
classification).
icemiller.com
Unequal Pay
EQUAL PAY ACT
TITLE VII
SECTION 1981
ADEA
ADA
Laws that can be used to pursue claims for
discriminatory unequal pay:
icemiller.com
Unequal Pay
Pay disparity
As compared to a male
who performs
substantially similar
duties
Substantially similar? It’s
not the title or the job
description that controls.
Instead, do they share a
“common core” of tasks?
Equal Pay Act – What Plaintiff Must Prove:
icemiller.com
The Equal Pay Act’s power – the
EMPLOYER bears the burden of proving
that gender isn’t the reason the female
receives less pay.
Unequal Pay
icemiller.com
Unequal Pay
What is your proof?
Hiring documentation
Performance
standards and
scores
Notes showing the
reasons for pay
decisions
Decision-maker
testimony
icemiller.com
Unequal Pay
Equal Pay Act –
Available Damages
Amount of pay
difference
Liquidated damages
Attorney’s fees and
costs
icemiller.com
Unequal Pay
Proof: You reasonably
attempted to ascertain
the requirements of the
EPA and acted in good
faith.
Result? No liquidated
damage award.
Knowledge is your defense.
icemiller.com
Unequal Pay
Under these laws, the
plaintiff must prove an
intent to discriminate.
Available Damages?
Amount of pay difference
Compensatory damages
Punitive damages
Attorney’s fees and costs
Other laws also prohibit pay inequity.
icemiller.com
Unequal Pay
A legitimate reason for a
pay difference may
weaken over time.
What to do?
Conduct an audit and
periodically repeat the
process, looking for
pay differences that
are no longer
meaningful.
icemiller.com
Unequal Pay
Audit Steps
Determine scope
State(s) law applicable?
Protected category(ies)?
Identify form(s) of pay to review
Identify factors managers use in setting
pay or determining raises/bonuses
Assess whether disparities are explained
by legitimate factors
icemiller.com
Unequal Pay
What's new? Salary
history bans
Salary history bans
prohibit inquiry on an
application form or at
an interview as to
what pay the
applicant earned
from prior employers.
icemiller.com
Unequal Pay
Does using past pay
information in deciding
how much to offer put
the employer at risk for
liability?
The case against
Google
Rizo v. Yuvino (9th Cir.
Apr. 9, 2018)
icemiller.com
Unequal Pay
Review pay practices
Review hiring process
Update job descriptions
Audit employee pay and
increase pay as needed
Communicate clear
performance goals
Revise policies as needed
Conduct training
A good offense is the best defense.
icemiller.com
Unequal Pay
Knock, knock – an
employee pays HR a
visit to ask about her
pay. Now what?
Investigate
Discuss
Decide course of
action
Respond
icemiller.com
Ryan M. Poor
317 236 5976
ryan.poor@icemiller.com
Germaine Winnick Willett
317 236 5993
germaine.willett@icemiller.com
This presentation is intended for general information purposes only and does not and is not intended to constitute legal advice. You should consult with legal counsel to determine
how laws, decisions and other matters discussed herein apply to specific circumstances.
Copyright© 2018
Questions?

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Acoun 2018 indy_shrm_conference_pay_metoo_is_equal_pay_liability_lurking_in_your_company_sfuture_ice_miller_llp_

  • 1. icemiller.comicemiller.com #PayMeToo Is Equal Pay Liability Lurking in Your Company’s Future? Ryan M. Poor 317 236 5976 ryan.poor@icemiller.com Germaine Winnick Willett 317 236 5993 germaine.willett@icemiller.com
  • 2. icemiller.com The trend: pay-related litigation is on the rise. Plaintiff-side attorneys are exploring class actions. Newsworthy settlements increase awareness of the claim. Unequal Pay
  • 3. icemiller.com Equal Pay Act claims boil down to: Does pay disparity exist between the plaintiff and just one similarly situated employee of the opposite sex? Do the employees being compared have substantially similar duties? Can the employer show that the disparity is due to a reason other than gender? “Even a dollar’s difference based on sex violates both Title VII and the Equal Pay Act.” King v. Acosta Sales & Mktg. Unequal Pay
  • 5. icemiller.com Unequal Pay Is there a difference in pay – Why? A legitimate reason for pay disparity is one based on a reason other than gender (or other protected classification).
  • 6. icemiller.com Unequal Pay EQUAL PAY ACT TITLE VII SECTION 1981 ADEA ADA Laws that can be used to pursue claims for discriminatory unequal pay:
  • 7. icemiller.com Unequal Pay Pay disparity As compared to a male who performs substantially similar duties Substantially similar? It’s not the title or the job description that controls. Instead, do they share a “common core” of tasks? Equal Pay Act – What Plaintiff Must Prove:
  • 8. icemiller.com The Equal Pay Act’s power – the EMPLOYER bears the burden of proving that gender isn’t the reason the female receives less pay. Unequal Pay
  • 9. icemiller.com Unequal Pay What is your proof? Hiring documentation Performance standards and scores Notes showing the reasons for pay decisions Decision-maker testimony
  • 10. icemiller.com Unequal Pay Equal Pay Act – Available Damages Amount of pay difference Liquidated damages Attorney’s fees and costs
  • 11. icemiller.com Unequal Pay Proof: You reasonably attempted to ascertain the requirements of the EPA and acted in good faith. Result? No liquidated damage award. Knowledge is your defense.
  • 12. icemiller.com Unequal Pay Under these laws, the plaintiff must prove an intent to discriminate. Available Damages? Amount of pay difference Compensatory damages Punitive damages Attorney’s fees and costs Other laws also prohibit pay inequity.
  • 13. icemiller.com Unequal Pay A legitimate reason for a pay difference may weaken over time. What to do? Conduct an audit and periodically repeat the process, looking for pay differences that are no longer meaningful.
  • 14. icemiller.com Unequal Pay Audit Steps Determine scope State(s) law applicable? Protected category(ies)? Identify form(s) of pay to review Identify factors managers use in setting pay or determining raises/bonuses Assess whether disparities are explained by legitimate factors
  • 15. icemiller.com Unequal Pay What's new? Salary history bans Salary history bans prohibit inquiry on an application form or at an interview as to what pay the applicant earned from prior employers.
  • 16. icemiller.com Unequal Pay Does using past pay information in deciding how much to offer put the employer at risk for liability? The case against Google Rizo v. Yuvino (9th Cir. Apr. 9, 2018)
  • 17. icemiller.com Unequal Pay Review pay practices Review hiring process Update job descriptions Audit employee pay and increase pay as needed Communicate clear performance goals Revise policies as needed Conduct training A good offense is the best defense.
  • 18. icemiller.com Unequal Pay Knock, knock – an employee pays HR a visit to ask about her pay. Now what? Investigate Discuss Decide course of action Respond
  • 19. icemiller.com Ryan M. Poor 317 236 5976 ryan.poor@icemiller.com Germaine Winnick Willett 317 236 5993 germaine.willett@icemiller.com This presentation is intended for general information purposes only and does not and is not intended to constitute legal advice. You should consult with legal counsel to determine how laws, decisions and other matters discussed herein apply to specific circumstances. Copyright© 2018 Questions?