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Pay Equity Shareholder Proposals

Scrutiny of the gender pay gap in the U.S. and abroad has intensified in recent years and shows no sign of diminishing in the short term.

In the U.K., both private and public sector employers with at least 250 employees are now required to publish gender pay data. This is an annual obligation to publish details including the organization’s overall gender pay gap, the percentages of male and female employees across four quartiles and the gender pay gap in relation to bonuses. The deadline for the first reports was April 4, 2018, for private sector employers and March 30, 2018, for public sector employers.

Meanwhile, in the U.S., the Equal Employment Opportunity Commission continues to identify pay discrimination enforcement actions among its strategic priorities, and a number of states (e.g., California, Delaware, Oregon, etc.) have recently enacted more stringent laws aimed at achieving pay equality in the workplace.  Alongside these

The Prior-Salary Defense and the Evolving Landscape of Pay Equity Law

The Equal Pay Act (“EPA”) requires payment of equal wages to employees of the opposite sex who perform equal work but recognizes four statutory defenses to a claim for pay discrimination. The last of those defenses is a “catch-all,” which covers pay differences “based on any other factor other than sex.” Breaking with the EEOC’s long-standing interpretation of this defense, the Ninth Circuit Court of Appeals recently held that an employer may rely on an employee’s prior salary to justify a wage differential between men and women performing the same job.

In Rizo v. Yovino, 854 F.3d 1161 (9th Cir. 2017), the defendant employer conceded that it paid the plaintiff less than her male colleagues for the same work but countered that the law permitted its wage practice because it was “based on any other factor other than sex” – namely, each employee’s prior salary. The district court ruled that

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