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Pondering The Future Of Equal Pay Litigation: What A "Business Necessity" Requirement Means For An Employer's Defense Against Equal Pay Claims | Seyfarth Shaw LLP


Seyfarth Synopsis:
Pending federal bill H.R. 7, titled the Paycheck Fairness Act, could import into federal law some significant changes that have already been enacted in a few states around the country. If enacted, it could significantly alter (some would say eliminate) a key affirmative defense of the Equal Pay Act. Specifically, rather than allowing a wage differential to exist due to any factor other than sex, employers, under H.R. 7, would be required to show that the wage differential is a matter of “business necessity.” This article will discuss the contours of this onerous requirement, assess the pertinent implications, and consider its prevalence in state law analogs. ....

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