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U.S. Supreme Court won't review 9th Circuit's prior salary decision

July 2020 employment law letter
Authors: 
John D. Clifford, Fortney & Scott, LLC

Earlier this year, the U.S. 9th Circuit Court of Appeals held that an employer cannot rely on an individual's salary history to rebut claims of disparate pay under the Equal Pay Act (EPA). In Rizo v. Yovino, a school district sought to defend itself against a female teacher's allegations of disparate pay by asserting that her compensation was based on her past salary and was therefore due to a "factor other than sex," which is an affirmative defense under the EPA. However, the court of appeals rejected that argument, holding that under the EPA, a defense based on "factors other than sex" must be limited to job-related factors. The court concluded that previous pay for a different job cannot be deemed job-related.

The 9th Circuit's ruling aligned it with the 2nd, 4th, and 10th Circuits, which have rendered similar opinions. The 7th Circuit remains the lone federal appeals court that has found an employer's reliance on salary history is a valid defense to EPA claims. The school district sought Supreme Court review of the 9th Circuit's decision, but the Court refused to hear the employer's challenge (https://abcnews.go.com/US/wireStory/supreme-court-declines-hear-equal-pa...). As a result, the circuit split on the issue will remain unresolved for the time being.

Salary history bans increasing pay for women, African Americans

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