Equal pay for equal work is a hot issue. And disputes over whether a female employee is entitled to receive the same compensation as a male co-worker typically focus on whether they perform substantially similar work. Now a new case involving a human resources administrator provides a practical look at some factors courts weigh when evaluating equal pay claims.
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Employee’s Job Duties Expand
The case involved Laurie Kay Howard, who began work as a secretary at the United Technologies Automotive plant in Fort Wayne, Ind. The plant, which was one of United’s smaller facilities, employed 53 workers, all salaried and non-union. Jim Price, the human resources manager at a larger United facility 30 miles away in Huntington, also oversaw HR at the Fort Wayne facility. After a year at United, Howard’s job duties expanded to include workplace health and safety issues, and the company phone directory listed her as the “health and safety professional.” Eventually, she was promoted to human resources coordinator, and the plant manager recommended that she be promoted to HR manager.However, United refused to create an HR management position at Fort Wayne, saying Price already handled those responsibilities.
Employee Wants More Pay
Howard responded by suing United under the federal equal pay law. She argued that she performed all the functions of an HR manager but was paid less than those who held that position—all men—at nearby United plants. United countered that she was paid less because she didn’t perform the same work.
Court Rejects Equal Pay Claim
A federal Court of Appeals threw out Howard’s case. The court explained that the law forbids paying workers of one sex less than workers of the opposite sex for work that requires equal skill, effort and responsibility. But a pay differential can be justified by factors other than sex, such as seniority, merit, experience or education.The court said that the male HR managers at other United plants had additional duties Howard didn’t have that required greater skill and effort. In particular, two nearby United plants employed 127 and 268 workers, respectively. The workers there were both salaried and hourly, and one of the plants was unionized. Thus, managers at these plants had more workers to train, more union grievances to deal with, more hourly wages to track and more personnel records to maintain, all of which justified higher pay than Howard received.
Pay Disputes Carry Hefty Costs
It’s critical to stay on top of equal pay issues so you don’t get caught up in an expensive dispute. Equal pay violations can carry hefty double back pay awards as well as attorneys’ fees and criminal penalties of up to $10,000 and six months in jail.