A recent federal appeals court decision in Lane v. Stericycle, Inc. illustrates key hurdles for employers facing pay discrimination claims under the Equal Pay Act and Title VII.
In this case, which involved claims that women promoted into a new position were paid less compared to men who were similarly promoted, the appeals court reversed summary judgment for the employer, emphasizing:
- Plaintiffs can identify pay comparators later in litigation, not just in their initial complaint;
- Delays in raising pay—even if eventually corrected—may be considered evidence of discrimination; and
- Employers must substantiate any “factor other than sex” defense to justify the pay difference.