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Use of Past Salary Justification for Pay Disparity Says California Court

California’s Ninth Circuit reversed a district court ruling in Rizo v. Yovino that held that an employer violated the Equal Pay Act because of its bright-line policy rule of paying new employees 5% more than their prior salaries.

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It is likely that more equal pay claims will reach litigation in the coming years. As a result, it is important that employers audit their pay practices to protect against these claims. The skilled attorneys at Garcia & Gurney, ALC have years of experience representing California businesses in the Pleasanton and beyond. Call (925) 468-0400 today to schedule a consultation and learn about your business’s obligations under California and federal employment law.

The information contained in this article is provided by Garcia & Gurney, ALC (“G&G") and is provided for educational and informational purposes only and should not be construed as legal advice or an offer to perform services on any subject matter. Recipients of this article should not act or refrain from acting on the basis of any information included in this article without seeking appropriate legal advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. G&G expressly disclaims all liability with respect to actions taken or not taken by the recipient based on any or all of the information or other contents in this article. This article not intended to constitute an advertisement for professional services or any other services. Nothing herein is intended to create an attorney-client relationship and shall not be construed as legal advice.

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