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ARTICLE · 01 APRIL 2020

Taking Into Account Salary History In Setting Pay

The Ninth Circuit recently held for the second time in Rizo v. Yovino that, under the federal Equal Pay Act (the "EPA"), prior salary history cannot be used by employers to justify sex-based pay differentials.

United StatesEmployment and HR

The Ninth Circuit recently held for the second time in Rizo v. Yovino that, under the federal Equal Pay Act (the "EPA"), prior salary history cannot be used by employers to justify sex-based pay differentials.

The EPA prohibits pay discrimination on the basis of sex and does not require proof of discriminatory intent. Specifically, the EPA requires equal pay for equal work that is performed under similar working conditions on jobs that require equal skill, effort and responsibility. The EPA permits unequal pay only if the inequality results from (i) a seniority system; (ii) a merit system; (iii) a system that measures earnings by quantity or quality of production; or (iv) a differential based on any other factor other than sex. In Rizo, the Ninth Circuit held that past salary is not a "factor other than sex" that can justify sex-based pay gaps.

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