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Carmoon Group Ltd.

Business Insurance
Hempstead New York
Protect Your Business from a Pay-Discrimination Lawsuit with Employment
Practices Liability Insurance

by Floyd Arthur

In October 2015, Gov. Jerry Brown of California signed one of the strongest antidiscrimination laws in the United States. Titled the California Fair Pay Act, the
statute addresses the persistent and pervasive salary gap between men and women
that exists both in California and nationwide.
Title VII of the Civil Rights Act of 1964 prohibits discrimination based on race, color,
religion, sex or national origin, and this includes discrimination in pay. Nevertheless,
data from 2014 shows that women in California are paid substantially less than men
earning an average 84 cents for every dollar men make. (That number is 78 cents
on the dollar nationwide.) That gap is even larger for Californias Latina women, who
earn about 44 cents for every dollar that white men make. In all, full-time female
employees in the state earn about $34 billion less each year than males.

Changing the Rules on Pay Discrimination


Historically, the courts have viewed gender discrimination pay disputes in very
narrow terms. As a rule, women can sue for pay disparities only if they are paid less
than similarly qualified male employees who have the same job title and perform
the exact same job. Thus, a female housekeeper who cleans rooms in a hotel cannot
claim discrimination if a male janitor who cleans the hotel lobby is paid more than
she.
Additionally, the courts have not mandated that male and female employees who
work for the same company in different locations be paid equally. Thus, a female
nurse who works for a large hospital chain can be paid less than a male nurse who
performs the same job duties in a hospital 5 miles away. (According to a recent
report in the Journal of the American Medical Association, female nurses in the
United States are paid an average $11,000 per year less than their male
counterparts.)
By contrast, the new statute, which received strong bipartisan support, specifies
that men and women must be paid equally for substantially similar work. Said
the bills author, Sen. Hannah-Beth Jackson (D-Santa Barbara), Now they're going
to have to value the work equally.
The law also expressly prohibits employer retaliation against employees who
discuss or request information about the wages of other employees.

Floyd Arthur Insurance Expert New York


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Carmoon Group Ltd. Business Insurance


Hempstead New York
Legal Experts Predict More Pay Discrimination Lawsuits
The bill, which goes into effect in Jan. 1, 2016, is expected to precipitate an increase
in the number of gender-based pay discrimination lawsuits in California, and some
legal experts have expressed concern that it will negatively impact the business
climate in the state. If an employer is going to build a new call center, they are just
not going to build that in California, said labor attorney Geoff DeBoskey in a
statement to the Los Angeles Times.
In order to prevail in a gender-bias pay-discrimination lawsuit, employers will have
to prove that wage differences between men and women are due to factors other
than gender, such as merit or seniority, and that they are job-related and
reasonable.

Pay Discrimination Lawsuits -- 2015


The law comes on the heels of several high-profile gender-related pay discrimination
lawsuits filed this year:

In September, former Microsoft employee Katie Moussour is sued the tech


giant for an undisclosed amount, claiming that she had been paid
substantially less than her male counterparts during her seven year tenure at
the company. The suit came soon after Microsoft CEO Satya Nadella made his
now famous comment that women in the tech world should not ask for a
raise, but instead have faith that the system will actually give you the right
raises as you go along.
In March, Chia Hong, a former program manager for Facebook, filed a lawsuit
alleging that the company discriminated against and harassed her for three
years before firing her in October 2013.
Also in March, software engineer Tina Huang requested class action status in
a lawsuit against Twitter, claiming that the companys promotion process
gives men an unfair advantage over female employees.

Additionally, in November, uniform manufacturer Cintas Corp. agreed to pay $1.5


million to settle a class action sexual discrimination lawsuit for failing to hire
qualified female applicants for sales jobs between 1999 and 2005. The suit was filed
by the Equal Employment Opportunity Commission.

Floyd Arthur Insurance Expert New York


http://floydarthur.info * http://carmoongroup.com * http://floyd-arthur.com

Carmoon Group Ltd. Business Insurance


Hempstead New York
Earlier this year, Unit Drilling, an oil-drilling company based in Oklahoma, paid
$400,000 in damages and other associated costs to settle an EEOC suit filed on
behalf of five women who were denied employment based on their sex. According to
the EEOC, the company systemically discriminated against women because they
were too pretty and their presence would distract the men.

If asked, most employers would state that they treat female employees with the
same respect and consideration as they do men. Yet, according to U.S. Census
Bureau data and other independent research, pay inequality is a reality that occurs
in the most forward-thinking firms. Thats why every business owner needs
employment practices liability insurance, which protects the company in the event
it is sued for:

Discrimination
Wrongful termination
Failure to employ or promote
Wrongful infliction of emotional distress
Sexual harassment
Breach of contract
Unfair evaluation of an employees
Deprivation of a career opportunity

Dont wait until you find yourself on the wrong end of a pay discrimination lawsuit to
act. Contact one of our business insurance experts to discuss employment practices
liability insurance today. We are available to take your call at 516-292-3780 Monday
through Friday from 9 a.m. to 6 p.m. Or request a free consultation online now.

Tags: Pay discrimination, Pay discrimination lawsuit(s), Employment Practices


Liability Insurance

Floyd Arthur Insurance Expert New York


http://floydarthur.info * http://carmoongroup.com * http://floyd-arthur.com

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