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Ninth Circuit Holds Prior Decision about Salary History under the Equal Pay Act

2018-04-16

Prior Salary alone or with other factors cannot justify wage differences based on sex

On April 9, 2018, the U.S. Court of Appeals for the 9th Circuit held an en banc  decision in Rizo v. Yovino.  The decision stating that prior salary alone or in combination with other factors cannot justify a wage differential between male and female employees.   The court held that the “factor other than sex” affirmative defense is limited to “job-related factors” and that prior salary is not “a legitimate measure of work experience, ability, performance, or any other job-related quality.”

This decision overturns the 2017 decision of a three-judge panel of the Ninth Circuit as well as the Court’s 1982 decision stating that prior salary was a permissible “factor other than sex” under the Equal Pay Act in Kouba v. Allstate Insurance Company.  

The foregoing has been prepared for the general information of clients and friends of Workplace Dynamics LLC and is not being represented as being all-inclusive or complete. It has been abridged from legislation, administrative ruling, agency directives, and other information provided by the government. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel.