Formal Response To The EEOC For Claim Of Pay Discrimination

Background

You are the Compensation Manager for XYZ Corporation. You recently received a letter of complaint from the Equal Employment Opportunity Commission (EEOC) on the ground of Equal Pay/Compensation Discrimination. Employee B is claiming that they are not being compensated equally to Employee A for doing the same work. Equal Pay for Equal Work.

Employee A and Employee B both graduated in 2006 from Towson University with a degree in Finance. Both employees were hired by XYZ Corporation on January 1, 2007 as Financial Analysts at a starting salary of $50,000. They both had the same level of experience when they were hired.

Both employees have remained in that role throughout the duration of their careers with XYZ Corporation. Both Employee A and Employee B have received satisfactory performance reviews throughout their careers with XYZ Corporation.

Merit Process at XYZ Corporation

Merit increases are awarded to employees of XYZ Corporation every year if the employee had a satisfactory performance review. The merit increase is a 5% increase to their salary.

Salary Comparison

Please see the below salary analysis for Employee A and Employee B. This includes their starting salary and subsequent merit increases throughout their careers at XYZ Corporation.

	Employee A	Employee B
Starting Salary	$50,000	$50,000
Year 1 Salary	$52,500	$52,500
Year 2 Salary	$55,125	$55,125
Year 3 Salary	$57,881	$55,125
Year 4 Salary	$60,775	$57,881
Year 5 Salary	$63,814	$60,775
Year 6 Salary	$67,005	$63,814
Year 7 Salary	$70,355	$63,814
Year 8 Salary	$73,873	$67,005
Year 9 Salary	$77,566	$70,355
Year 10 Salary	$81,445	$73,873

In Year 3, Employee B decided to take the entire year off to travel around Europe with friends and family. The XYZ Corporation recognized Employee B as a valuable member to the organization and wanted to retain their services when they returned in January of the following year. However; Employee B was not awarded a merit increase for year 3 since they were not actively employed and did not receive a performance review thus their annual salary remained the same.

In Year 7, Employee B again decided to take the entire year off to live in the wilderness of the Pacific Northwest and become one with nature. Again the XYZ Corporation recognized Employee B as a valuable member to the organization and wanted to retain their services when they returned in January of the following year. However; Employee B was not awarded a merit increase for year 7 since they were not actively employed and did not receive a performance review thus their annual salary remained the same as the previous year.

In Year 11, Employee B filed a Pay Discrimination Complaint with the EEOC because they are paid over $7,500 less than Employee A. Employee B states they both graduated from the same University in the same year and began working at the same corporation at the same time in the same position and both employees have received satisfactory performance reviews.

Instructions

Use the above information to write a formal response to the EEOC regarding this claim of Pay Discrimination. Use applicable laws and information to support your stance of whether there is validity in this claim or not.

Upload your Letter to the EEOC to Blackboard via the Assignment #1 Submission link below.

Helpful Information

Equal Pay/Compensation Discrimination

The Equal Pay Act requires that men and women in the same workplace be given equal pay for equal work. The jobs need not be identical, but they must be substantially equal. Job content (not job titles) determines whether jobs are substantially equal. All forms of pay are covered by this law, including salary, overtime pay, bonuses, stock options, profit sharing and bonus plans, life insurance, vacation and holiday pay, cleaning or gasoline allowances, hotel accommodations, reimbursement for travel expenses, and benefits. If there is an inequality in wages between men and women, employers may not reduce the wages of either sex to equalize their pay.

An individual alleging a violation of the EPA may go directly to court and is not required to file an EEOC charge beforehand. The time limit for filing an EPA charge with the EEOC and the time limit for going to court are the same: within two years of the alleged unlawful compensation practice or, in the case of a willful violation, within three years. The filing of an EEOC charge under the EPA does not extend the time frame for going to court

Equal Pay/Compensation and Sex Discrimination

Title VII also makes it illegal to discriminate based on sex in pay and benefits. Therefore, someone who has an Equal Pay Act claim may also have a claim under Title VII

Other Types of Discrimination

Title VII, the ADEA, and the ADA prohibit compensation discrimination on the basis of race, color, religion, sex, national origin, age, or disability. Unlike the EPA, there is no requirement under Title VII, the ADEA, or the ADA that the jobs must be substantially equal.