The Second U.S. Circuit Court of Appeals recently provided clarification on the Equal Pay Act’s (EPA) “factor other than sex” exemption in a new decision.
Anita Eisenhauer, a female professor at the Culinary Institute of America, alleged that she was the victim of pay discrimination in violation of both the EPA and New York Labor Law § 194(1). Since 2017, the Culinary Institute paid Eisenhauer a lower salary than it paid Robert Perillo, a male professor carrying a similar course load. For example, in 2019, Eisenhauer’s salary was $111,263, while Perillo’s was $118,080.
The Culinary Institute pays the professors according to the sex-neutral terms of a collective bargaining agreement (CBA) and employee handbook. Together, this compensation plan requires fixed pay increases triggered by time, promotion and degree completion.
When Eisenhauer and Perillo were hired, their starting salaries differed due to their different experience and education levels. Eisenhauer started at $50,000 in 2002 and Perillo started at $70,000 in 2008. Over the years, both attained further education and received promotions.
While the EPA prohibits pay discrimination on the basis of sex, it contains four exceptions, one of which permits “a differential based on any factor other than sex.”
The Culinary Institute argued that the compensation plan was a factor other than sex and therefore justified the pay disparity at issue. Eisenhauer countered that the compensation plan could not qualify as a factor...
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