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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.

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