By Martin J. Regimbal, JD, The Kullman Firm
The federal trial court in Aberdeen, Mississippi recently addressed an employee’s Equal Pay Act (EPA) claim. The Act requires that all employees who perform equal work receive equal pay unless a pay differential is justified by a factor other than sex. Although the employer provided reasons for the pay disparity that were unrelated to sex, the court held that the employee’s claim should be heard by a jury. The case is worth a close look.
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Tamra Renee Guest-White was a longtime employee of Checker Leasing, a vehicle leasing business. She worked up to a regional manager position and was responsible for facilities in Greenville, Starkville, Meridian, and Columbus as well as a location in Paducah, Kentucky. In 2013, Checker Leasing suffered significant losses, with 53% of the losses attributable to Guest-White’s region. The losses totaled approximately $375,000.
Faced with the losses, Checker Leasing decided to eliminate one of its regions and incorporate it into the remaining regions. Because Guest-White’s region had the lowest revenue and largest losses, Checker Leasing decided it should be incorporated into the other two regions. Thus, Guest-White’s services were no longer needed. Nevertheless, the employer offered her a different position, which she declined. Guest-White claimed she had been terminated, while Checker Leasing maintained she resigned.