Recently, the Equal Employment Opportunity Commission (EEOC) settled an equal pay lawsuit with a dealership, underscoring the importance of equal pay in the dealership workforce and the need for dealerships to conduct robust training and oversight of their employee management operations. As you know, the Equal Pay Act and Title VII of the Civil Rights Act of 1964 prohibit discrimination based on pay and retaliation against employees who request pay equal to employees of the opposite sex.
The EEOC settled with a dealership, which agreed to pay $62,500 and provide other relief to settle the pay discrimination and retaliation lawsuit. In addition to providing monetary relief, the two-year consent decree enjoins the company from sex-based pay discrimination and retaliation against employees seeking equal pay in the future. The dealership must adopt a policy that enables employees to report unequal pay, set out procedures for handling those complaints, and report to the EEOC its handling of any pay discrimination complaints. The company must also train its managers and supervisory employees on preventing sex-based wage discrimination.
For more information about equal pay and compensation discrimination and retaliation, please visit the following resources:
NADA Driven Guides
- Federal Wage and Hour, Child Labor, and Wage Discrimination Compliance
- Diversity as a Business Imperative