Monday, July 16, 2018
Hawai'i Free Press

Current Articles | Archives

Wednesday, May 16, 2018
Ninth Circuit’s Equal Pay Decision Requires Hawaii Employers to Reexamine Pay Structures
By Selected News Articles @ 2:25 AM :: 820 Views :: Labor, Small Business

Ninth Circuit’s Equal Pay Decision Requires Employers to Reexamine Pay Structures

From NFIB, May 08, 2018

In April 2018, the U.S. Court of Appeals for the Ninth Circuit issued a major blow to employers defending against Equal Pay Act claims. In the case, Rizo v. Yovino, the court determined that the EPA bars employers from relying on past wage or salary history as a justification for pay disparities.

The EPA prohibits employers from paying employees differently for the same work, except where the pay differential is justified by seniority, merit, the quality or quantity of their work product, or some “other factor other than sex.” The Rizo decision shocked many employers since the Ninth Circuit has held since 1982 that reliance on past wage or salary history is permissible as a “factor other than sex.”

As it stands, the Rizo decision conflicts with decisions from other federal courts and only applies to employers in the nine western states (Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, and Washington). Yet, it may cause employers throughout the nation to reevaluate pay structures and rethink whether it’s prudent to ask about wage and salary history when hiring.

What Does Rizo Mean for New Hires?

California and a handful of other jurisdictions already prohibit employers from inquiring about a job applicant’s wage or salary history. For employers in these jurisdictions, the Rizo decision is of little practical consequence when it comes to new hires because state law requires that employers set salaries without consideration of past wages or salaries. Salary decisions must be based on factors such as the employee’s experience, educational background, ability, or prior job performance.

For employers in other jurisdictions, the Rizo decision should give reason to rethink whether it is prudent to ask an applicant about wage or salary history. Even if operating in a state that still permits questions about salary history, an employee may argue that an EPA violation occurred if salaries differ between male and female employees in the same job. Indeed, given that Rizo requires employers to set wages and salaries in consideration of only legitimate factors (other than past wage and salary history), the decision effectively federalizes California’s prohibition on asking these questions.

What Does Rizo Mean for Existing Employees

Even if an employer no longer asks applicants about wage and salary history, previous pay decisions might have relied on this sort of information. So Rizo should encourage employers to reexamine existing employees’ salaries to ensure that legitimate business reasons – absent information about past wages or salaries – justify any pay differentials. In any event, employers should consult with outside legal counsel to determine whether it makes sense to conduct an internal audit for illegal pay disparities.

For more commentary, check out this article from the National Law Review.

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

808 State Update AM940

ABCDEFG Blog

ACA Signups Hawaii

ACCE

ALEC

Alliance Defending Freedom

Aloha Conservative Alliance

Aloha Life Advocates

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

American Mothers of Hawaii

AMVETS-Hawaii

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Audit The Rail

Ballotpedia Hawaii

Better Hawaii 

Blaisdell Memorial Project

Broken Trust

CAFR Hawaii

Castaway Conservative

Children's Alliance Hawaii

Children's Rights Institute

Christian Homeschoolers of Hawaii

Citizens for Recall

Cliff Slater's Second Opinion

Coffee Break

Conservative Forum for Hawaii

CSIS Pacific Forum

DAR Hawaii

DeedySupport.com

DVids Hawaii

E Hana Kakou Kelii Akina

E Māua Ola i Moku o Keawe

Farmers For Choice Hawaii

FIRE

Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Get Off Your Butts!

God, Freedom, America

Grassroot Institute

Habele.org

Hawaii Aganst Assisted Suicide

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crime Victims' Rights

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defending Marriage

Hawaii Defense Foundation

Hawaii Families for Educational Choice

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Firearm Community

Hawaii Fishermen's Alliance

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii Meth Project

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Right to Life -- Big Island

Hawaii Right to Life -- Oahu

Hawaii Senate Informer

Hawaii Shield Law Coalition

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Hawaii Votes

Heritage Foundation

HI Coalition Against Legalized Gambling

HIEC.Coop

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Homeless Crisis

Honolulu Navy League

Honolulu Traffic

Horns of Jericho Blog

House Minority Blog

House Republican Caucus YouTube

HPACC

Hump Day Report

Hunting, Farming and Fishing Assoc.

I Vote Hawaii

If Hawaii News

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

Judgepedia Hawaii

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes

KeyWiki

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii

NARTH

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii

OHA Lies

Ohana Policy Group

OurFutureHawaii.com

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons 

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Salvage The Rail

Save the Plastic Bag

School Choice in Hawaii

SenatorFong.com

SIFE Remington

SIFE W. Oahu 

Sink the Jones Act

Smart About Marijuana--Hawaii

St Marianne Copenull

State Budget Solutions Hawaii

State Policy Network

Statehood for Guam

Tax Foundation of Hawaii

TEA Party Maui

TFB Micronesia

The Harriet Tubman Agenda

The Long War Journal

The Real Hanabusa

Time Out Honolulu

Truth About Trade & Technology - Hawaii

UCC Truths

Union Members Know Your Rights

United Veterans Hawaii

US Tax Foundation Hawaii Info

Valor in the Pacific

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT