The EEOC settled an equal pay lawsuit against the Maryland Department of Transportation State Highway Administration (MDOTSHA). Typically, pay disparity cases are for women who are being paid less than their male counterparts. This case is an example of reverse discrimination.
A male employee discovered he was being paid less than female workers, even though he had more experience and tenure on the job. The pay disparity continued over several years. The inquiries made by the employee about the discrimination were ignored. The EEOC filed a lawsuit after attempting to reach a settlement in its conciliation process.
MDOTSHA pays for pay inequality
The settlement includes a $40,000 payment to the employee for back wages and other damages. MDOTSHA will also increase the employee’s salary to what a higher paid female earns. In addition, the organization will provide training to management and HR about compensation decisions and provide a notice to employees of their rights. The consent decree also prohibits future pay discrimination and retaliation against employees who bring pay disparity to their attention. Pay disparity between opposite sexes is not only against the law, but also fundamentally unfair.
Pay disparity violates the Equal Pay Act of 1963
Equal pay for equal jobs became law in the 1960s, but it dates back to 1872 when a female attorney who was a member of the American Woman Suffrage Association, convinced Congress to pass a law guaranteeing female federal employees the same pay as men. This only applied to federal employees, so it wasn’t until 1963 when women were entitled to equal pay in the workplace as a whole. Title VII of the Civil Rights Act of 1964 also prohibits discrimination in the workplace based on gender.
This is one more reminder to check your pay systems to ensure your business is operating within the law. If compensation does need to be adjusted, you cannot lower wages to make them equal. The EEOC has more information about equal pay in the workplace.
