In Rizo v. Yovino,1 the U.S. Court of Appeals for the Ninth Circuit recently examined whether an employer can justify a wage differential between male and female employees by relying on prior salary. The Ninth Circuit determined that prior salary—alone or in combination with other factors—cannot justify such a wage differential because prior salary is not job-related, and perpetuates the gender-based assumptions about the value of work that the Equal Pay Act was designed to end. In reaching this conclusion, the Ninth Circuit became the first appellate court to definitively address whether and how employers may consider wage history. Other federal appellate courts that have examined this question have typically concluded that while employers may not rely on an individual’s salary history alone to support a wage differential, they may do so if prior salary is considered among other factors.2
Home > Federal Law Articles > Sex and Gender Discrimination > Equal Pay > Ninth Circuit Holds “Catchall” Exception to the Equal Pay Act is Limited to “Job-Related” Factors, Excludes Consideration of Prior Salary