Monday, August 11, 2014

EEOC Update: Executive Pay Gap


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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

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