If equal pay issues aren’t visible on your radar screen, they should be. That’s because both the government and disgruntled employees continue to target employers who violate equal pay laws. Congress is actively debating a bill that would strengthen federal equal pay rules (see the Special Supplement on pending legislation in this month’s Bulletin). And the Equal Employment Opportunity Commission has just sued San Diego based Petco, claiming the pet supply retailer pays women less than men to manage some of its stores.Fortunately, an important new case involving a female collegiate basketball coach provides some needed guidance, outlining several factors you can legitimately consider when setting salaries. We’ll look at the decision and offer tips for steering clear of equal pay traps.
The HR Management & Compliance Report: How To Comply with California Wage & Hour Law, explains everything you need to know to stay in compliance with the state’s complex and ever-changing rules, laws, and regulations in this area. Coverage on bonuses, meal and rest breaks, overtime, alternative workweeks, final paychecks, and more.
Women’s Coach Demands More Pay
Marianne Stanley was the head coach of the University of Southern California (USC) women’s basketball team. In renegotiating her contract, she insisted that her compensation be raised to the level of the men’s basketball coach, George Raveling. The university refused and Stanley sued, claiming a pay disparity based on sex discrimination.
Court Rejects Equal Pay Suit
The Ninth Circuit Court of Appeal, which covers California, explained that a wage differential is not necessarily illegal provided it is based on factors other than gender, such as professional experience and education. In this case, USC had documented a number of legitimate reasons to support Stanley’s lower salary. For example, when Stanley started her USC coaching job, she had 14 fewer years of experience than Raveling. She also had less marketing and promotional experience, and unlike Raveling she had never coached an Olympic team or published a book about basketball. Thus, the court concluded that Stanley’s experience and qualifications were significantly inferior to Raveling’s and threw out her case.
How To Avoid Problems
This decision demonstrates that if you pay men and women differently for similar jobs, you must be able to point to specific lawful justifications. These include basing pay on seniority, using a merit system and measuring earnings by quantity or quality of production. Other factors that may be taken into consideration are education, experience, work shifts and prior salary. Also make sure to document your reasons clearly in hiring letters, internal memoranda and performance reviews.