What Does Equal Pay Decision Mean for Washington?

Date: May 09, 2018

Small business owners urged to check their compliance

The U.S. Court of Appeals for the Ninth Circuit recently issued a ruling it behooves all small-business owners in the court’s region to acquaint themselves with on the issue of equal pay. Even though the Ninth Circuit is headquartered in San Francisco, its jurisdiction spans nine states, including Washington.

“While the Rizo decision was an unexpected reversal of prior federal case law, Washington state employers will be similarly affected by legislation enacted earlier this year,” said Patrick Connor, NFIB’s Washington state director. “HB 1506, an update to the state’s equal pay act, specifically removes wage and salary history as an employer’s defense against discrimination claims. Small employers should familiarize themselves with the new state law, which takes effect June 7, 2018. Rule-making is expected to begin later this year; NFIB is a stakeholder in the rule-making process.”

Check out NFIB Senior Staff Attorney Luke Wake’s advice to small-business owners about the implications in the Rizo decision on equal pay. Also, NFIB members should make a regular habit of checking the NFIB Small Business Legal Center webpage for articles and information that might help stop that joker in the deck of all you have to worry about from being dealt to you: A Lawsuit.

Excerpt from the article:

“Even if an employer no longer asks applicants about wage and salary history, previous pay decisions might have relied on this sort of information. So Rizo should encourage employers to reexamine existing employees’ salaries to ensure that legitimate business reasons – absent information about past wages or salaries – justify any pay differentials. In any event, employers should consult with outside legal counsel to determine whether it makes sense to conduct an internal audit for illegal pay disparities.”

Click the graphic above to learn more about the legal issues surrounding your right to own, operate, and grow your small business.

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