Last week, Disney agreed to pay $43 million to resolve an ongoing class action lawsuit against the company regarding pay disparity allegations based on sex. The class action claims are all based on violations of California law, not federal law, as California employment laws are typically more favorable to employees, especially in comparison with states like South Carolina.
The Allegations of the Pay Disparity Lawsuit
In the underlying lawsuit, filed in 2019, female employees claimed that Disney paid them less than their male counterparts for performing substantially similar work. At least part of this pay disparity was caused by Disney’s decision to base starting salary on an applicant’s prior salary, which would often skew the salary offers for female employees downward, according to the plaintiffs. The plaintiffs’ expert, a labor economist, conducted an analysis and found that between 2015 to 2022, female employees of Disney were paid less than their male counterparts. Disney denied this report.
But over Disney’s objections, the California court certified the class of employees for inclusion in the lawsuit in December 2023. And, as of last week, Disney has put up the white flag and agreed to pay out $43 million to resolve the claims.
Pay Disparity Claims for South Carolina Employees
South Carolina does not have a standalone equal pay law, like the one at issue in the California case. But South Carolina employees with pay disparity issues are still covered by existing federal laws, including Title VII of the Civil Rights Act and the Equal Pay Act. Under Title VII, federal law prohibits companies with at least 15 employees from discriminating against employees regarding the terms and conditions of employment, which includes compensation. South Carolina employees with sex discrimination claims for compensation must file with the Equal Employment Opportunity Commission (EEOC) within 300 days of the discriminatory act before bringing a lawsuit in state or federal court.
Under the Equal Pay Act (EPA), South Carolina employees can bring a lawsuit directly against the company without going through the EEOC first. The claim must be brought within two years of the violation (three years if the violation is willful). Each new paycheck that is discriminatory triggers a new statute of limitations period. Nearly all employers are covered by the EPA, not just those with 15 employees like under Title VII. The EPA requires that men and women in the same workplace be given equal pay for equal work. The jobs need not be identical, but they must be substantially equal. Job content (not job titles) determines whether jobs are substantially equal.
Employees who raise internal or external complaints about unequal pay are protected against retaliation (or, at the very least, would have a separate claim for retaliation if the company takes an adverse action against an employee who complains).
Takeaways for South Carolina Employees
If you believe that you are receiving less pay than your male counterpart for the same work, then you may have a pay disparity claim both under Title VII and under the Equal Pay Act based on your sex. But these cases are always fact specific and require a detailed analysis.
You can contact our office at (864) 233-4351 or via our Contact Us page to provide additional information about your situation.
