Pay Equity

1
Chapter 14

• Pay Equity Age Discrimination

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Equal Pay for Equal Work

• Equal Pay Act of 1963 (amended the Fair Labor
  Standards Act FLSA).
• Prohibits employers from discriminating against
  employees covered by the minimum wage provisions
  of the FLSA.
• 1974 amendments made the act applicable to
  employees of the federal government and state and
  local governments and their agencies.
• Enforcement responsibility of the EEOC.

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Exceptions

• 1. a seniority system
• 2. a merit system
• 3. a system which measures earnings by quantity
  or quality of production
• 4. a differential based on any other factor other
  than sex

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Compliance

• Valid job descriptions based on a reliable and
  valid job evaluation process.
• Job content consistent with job descriptions.

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Age Discrimination in Employment Act (ADEA)
OWBPA

• ADEA Directed at preventing discrimination
  against individuals age 40 years and older
  basically eliminates mandatory retirement
  limited exceptions.
• OWBPA very specific criteria must be met when
  older workers sign waivers not to sue for age
  discrimination.
• Age Largest group of individuals with protected
  group status.
• Enforcement EEOC http//www.eeoc.gov/types/age.
  html

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Important Court Cases

• OConnor v. Consolidated Coin Caterers Corp., -
  replacement by someone under 40 not a necessary
  element of an ADEA prima facie case.
• Crawford v. Medina General Hospital hostile
  working environment claims actionable.
• Reeves v. Sanderson Plumbing
• Mathis v. Phillips Chevrolet
• Oubre v. Entergy Operations, Inc., (1998)66
• Smith v. City of Jackson (2005) Disparate
  Impact theory of liability is available to
  employees suing under the ADEA.

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Waiver Requirements Under the OWBPA (P. 538).

• The agreement must be in clear concise language,
  signed by the employee
• Agreement must clearly state that the employee
  waiving all rights under the ADEA
• Employee has 21 days to decide whether to accept
  and one week to rescind after signing
• The waiver must state that the employee has
  consulted an attorney.

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Reduction in Force (RIF)

• A legitimate RIF is motivated by business
  considerations business rational should be
  explicit and well defined.
• Employer must assess for disparate impact.
• Reducing exposure to litigation when using a RIF
• Adopt an objective business criterion
• Supervisory training in use of the criterion
• Eliminating code words overqualified that
  might suggest age is a factor
• Check for disparate impact
• Assistance in job transition be sensitive but
  not apologetic.