Old pay cut may be basis for new pay-bias claim — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Old pay cut may be basis for new pay-bias claim

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It’s important to regularly review your records of evidence of past discrimination. If an employee now earns less after missing out on past promotions, each new paycheck can support an equal-pay claim under the Lilly Ledbetter Fair Pay Act.

Now a court has expanded that reasoning to include lower paychecks based on past discriminatory pay cuts.

Recent case: Todd Greenleaf, who is black, worked for a car rental company. In 2000, he was transferred to a new location and took a $5,000 pay cut. Years later, he claimed that white employees who transferred kept their same pay rate. As a result, he claimed each paycheck was lower based on the discriminatory cut.

The court agreed he had a case. (Greenleaf v. DTG, No. 2:09-CV-192, SD OH, 2011)

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