- Commissions and other merit-based pay don't matter in equal pay cases, appeals court says
- Court revived claims that medical device firm underpaid female manager
- Plaintiff was backed by EEOC
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(Reuters) - A U.S. appeals court on Friday ruled that courts should only consider an employee's base salary or wage rate, and not additional compensation such as commissions, when analyzing claims of sex-based pay discrimination.
A three-judge panel of the 4th U.S. Circuit Court of Appeals revived a lawsuit against medical device maker Tactile Systems Technology by Tracy Sempowich, a former sales manager who claims she was paid less than a male colleague and transferred to make room for him to be promoted.
Sempowich was paid a lower salary than the male manager but her total pay was higher because she earned more commissions, according to court filings.
A North Carolina federal judge ruled that Sempowich could not state a claim under the federal Equal Pay Act, but the 4th Circuit on Friday said the judge was wrong to look at the managers' total compensation rather than their base salaries alone.
Sempowich was backed by the Equal Employment Opportunity Commission, which filed an amicus brief earlier this year and...
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