Monday, August 11, 2014
image from eeoc.gov
The EEOC recently settled an interesting case of pay discrimination involving a female executive employee. The allegations in the case maintained that Royal Tire, Inc. paid this executive $35,000 per year less than her predecessor, who was a male worker. The female executive’s salary was also $19,000 less than the minimum established by the company for the position. The case, which was settled for $182,500, was brought under both Title VII and the Equal Pay Act. From the press release on the case:
“In addition to substantial monetary relief … Royal Tire must comply with the three-year consent decree, which contains an injunction prohibiting the company from any future discriminat[ion]. . . Additionally, the consent decree requires Royal Tire to evaluate its pay structure to ensure compliance with the Equal Pay Act and Title VII . . The decree requires training for Royal Tire's managers and employees under the [relevant statutes].”
Wage discrimination is always difficult to establish, and it is interesting to see how the claim proceeded in this particular case. The glass ceiling is not always limited to obtaining a particular position. Indeed, there are always concerns of equal pay for the work being performed even after a promotion has been secured.
-- Joe Seiner