Opinion ID: 2773584
Heading Depth: 3
Heading Rank: 2

Heading: QEP’s Affirmative Defense

Text: Once a plaintiff has established a prima facie case of discrimination under the EPA, the defendant must show the pay disparity was justified by one of four permissible reasons: “(i) a seniority system; (ii) a merit system; (iii) a system which measures earnings by quantity or quality of production; or (iv) a differential based on any other factor other than sex.” 29 U.S.C. § 206(d)(1); see also Cnty. of Wash. v. Gunther, 452 U.S. 161, 168 (1981) (describing these as the EPA’s “four affirmative defenses”). To meet this burden, an employer must “submit evidence from which a reasonable factfinder could conclude not merely that the employer’s proffered reasons could explain the wage disparity, but that the proffered reasons do in fact explain the wage disparity.” Mickelson v. N.Y. Life Ins. Co., 460 F.3d 1304, 1312 (10th Cir. 2006) (citation omitted). At the summary judgment stage, this means an employer must “prove at least one affirmative defense so clearly that no rational jury could find to the contrary.” Id. at 1311 (citation omitted). - 12 - A bona-fide, gender-neutral pay classification system constitutes a “factor other than sex” under the EPA. Washington Cnty., 452 U.S. at 171 (courts cannot substitute their judgment for that of an employer with a “bona fide job rating system” (citation omitted)); Corning Glass Works v. Brennan, 417 U.S. 188, 201 (1974). However, such a classification system serves as a defense only where any resulting difference in pay is “rooted in legitimate business-related differences in work responsibilities and qualifications for the particular positions at issue.” Aldrich v. Randolph Cent. Sch. Dist., 963 F.2d 520, 525 (2d Cir. 1992); see also Brownlee v. Gay & Taylor, Inc., 642 F. Supp. 347, 353 (D. Kan. 1985) (mere presentation of a formal salary classification system does not foreclose EPA claim). QEP paid Ms. Riser $47,382 annually, Mr. Chinn $62,000 annually (31% more than Ms. Riser), and Mr. Bryant $66,000 annually (39% more than Ms. Riser). QEP argues the pay differential between Ms. Riser and Mr. Chinn was based on QEP’s bona-fide, gender-neutral pay classification system that was based on compensation data in the industry. Aplee. Br. at 32–33. Further, QEP maintains the pay differential with respect to Mr. Chinn is explained in part by QEP’s desire to pay him the same amount he received at his prior job. Similarly, it argues Mr. Bryant’s elevated salary was due to his initial rejection of QEP’s offer of $62,500. QEP asserts that these facts conclusively establish that any difference in pay was based on a “factor other than sex.” We disagree. - 13 - QEP’s compensation system classified Ms. Riser’s position as a Grade 5, Mr. Chinn’s as a Grade 7, and Mr. Bryant’s as a Grade 7. But, Ms. Riser’s pay grade was not based on the duties she was actually performing, but on the duties administrative assistants typically perform—despite the fact Ms. Riser’s supervisors knew she was not performing administrative assistant duties. Ms. Riser was never asked by anyone at QEP about the skills or qualifications needed for her position. Moreover, she twice requested for her pay grade to be reevaluated, to no avail. Given the fact that Ms. Riser performed the bulk of the responsibilities performed by Mr. Chinn and Mr. Bryant combined, a reasonable trier of fact could certainly question how 31% and 39% pay gaps could be explained by “legitimate business-related differences in work responsibilities and qualifications for the particular positions at issue.” Aldrich, 963 F.2d at 525. QEP is correct that an individual’s former salary can be considered in determining whether pay disparity is based on a factor other than sex. See Brickey v. Emp’rs Reassurance Corp., 293 F. Supp. 2d 1227, 1233 (D. Kan. 2003). However, the EPA “precludes an employer from relying solely upon a prior salary to justify pay disparity.” Angove v. Williams-Sonoma, Inc., 70 F. App’x 500, 508 (10th Cir. 2003) (unpublished). The 31% disparity between Ms. Riser and Mr. Chinn’s pay cannot be justified simply by Mr. Chinn’s prior salary. Likewise, a company’s decision to pay an elevated salary to an applicant after he rejected a lower offer can constitute a factor other than sex. See Clayton - 14 - v. Vanguard Car Rental U.S.A., Inc., 761 F. Supp. 2d 1210, 1273–74 (D.N.M. 2010). But this, at most, accounts for $3500 per year of the pay disparity between Ms. Riser and Mr. Bryant—nowhere near the full $18,618. In short, we cannot say that QEP has “prove[n] at least one affirmative defense so clearly that no rational jury could find to the contrary.” Mickelson, 460 F.3d at 1311. Thus, we reverse the district court’s grant of summary judgment to QEP on Ms. Riser’s EPA claim.