By Eric B. Meyer
In the 2 1/2 years of writing this blog, I’ve never had a post on the Equal Pay Act — until now.
The Equal Pay Act requires equal pay for equal work on jobs the performance of which require equal skill, effort, and responsibility, and which are performed under similar working conditions. Any wage discrimination on the basis of sex violates the Act.
The EEOC celebrated “Equal Pay Day” last week. So, now is as good a time as any to address the Act through this recent case from the Third U.S. Circuit Circuit Court of Appeals.
4 exceptions to the Equal Pay Act
In Puchakjian v. Township of Winslow, Deborah Puchakjian filled a Municipal Clerk vacancy within the Township of Winslow which came about a result of the retirement of the male incumbent. His salary at retirement was $85,515; Ms. Puchakijan’s salary to replace him was $55,000. She sued. She lost. You see, there are four exceptions to the Act’s general rule of equal pay for equal work:
- A bona fide seniority system;
- A merit system:
- A system which measures earnings by quantity or quality of production; or,
- Any factor other than gender.
Pay disparity due to tenure
The Third Circuit agreed with the lower court that the retired Municipal Clerk’s yearly salary increases over his 29-year tenure in the position “both explained and motivated the wage disparity.” Consequently, the wage disparity was based on a factor other than gender. Given these four Equal Pay Act exceptions, claims under the Act are tough to prove.
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That said, a priority in the EEOC’s Strategic Enforcement Plan (FY 2013-2016), is the enforcement of equal pay laws. Indeed, in 2012, the EEOC received over 4,100 charges of gender-based wage discrimination, and obtained over $24 million in relief for victims of gender-based wage discrimination through administrative enforcement efforts and litigation.
So, now is as good a time as any to conduct a wage audit and make sure that any disparity in pay for equal work is attributable to one of the Act’s exceptions.
This was originally published on Eric B. Meyer’s blog, The Employer Handbook.