Michigan Healthcare System to Pay $104.7K to Settle Wage Discrimination Lawsuit

September 9, 2020

A non-profit health care system based in Saginaw, Mich., will pay $104,707 and provide other relief to settle a federal gender wage discrimination lawsuit.

The U.S. Equal Employment Opportunity Commission (EEOC) alleged in its lawsuit that Covenant Medical Center Inc., doing business as Covenant HealthCare, violated federal law by paying a female business intelligence developer a lower salary than two males who held the same job and performed the same work.

Such alleged conduct violates the Equal Pay Act of 1963 (EPA) and Title VII of the Civil Rights Act of 1964. The EEOC filed its suit (EEOC v. Covenant HealthCare,2:20-cv-10662-MAG-RSW, United States District Court, E.D. Michigan) on March 11, 2020, in U.S. District Court for the Eastern District of Michigan after first attempting to reach a pre-litigation settlement through its conciliation process.

The parties resolved the lawsuit by entering into a two-year consent decree.

In addition to the monetary relief, the decree requires Covenant HealthCare to increase the female employee’s salary; revise its compensation policies to ensure compliance with the EPA and Title VII; train managers on compensation discrimination; and post a notice to inform employees of their rights under both federal statutes.

Source: EEOC

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