Ninth Circuit Rules Prior Salary May Support Differences in Compensation under the EPA

Wednesday, May 10, 2017

Despite a number of jurisdictions enacting laws to the contrary, the Ninth Circuit in Rizo v. Yoviny, decided April 27, 2017, found that using prior salary alone may support differences in compensation under the Equal Pay Act as a factor other than sex if using prior salary was reasonable and effectuated a business policy.

As reported here recently, a number of state and local laws have been passed which make it unlawful for employers to consider wage history in the hiring process and also pay differences based solely on prior salary.  There is also a federal court split on the use of prior salary by employers in Equal Pay Act cases.  As a result, employers should carefully examine their policies on the use of prior wages.

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