Remember that thing about equal pay for equal work? It also applies to severance packages, according to a recent federal court ruling.
Karla Gerner, HR director of Chesterfield County in Virginia, found herself out of a job when county government reorganized.
County officials offered her three months’ salary and health benefits as a severance package in exchange for a waiver of her rights to sue her employer.
She considered the offer for four days, and finally declined.
Then she sued, alleging the county violated federal sex discrimination laws — because the county had offered a far sweeter deal to four male employees who were terminated.
In court papers, Gerner claimed “prior male department directors, including employees who were not meeting performance expectations, were transferred to positions with less responsibility while being allowed to continue with their salary and benefits, or were kept on the payroll with benefits for up to six months or more to enhance their retirement benefits.”
County officials said the package couldn’t have been an adverse employment action, because the offer was made after she was terminated.
Hogwash, said the court. Federal anti-bias laws make it illegal to “discriminate against any individual” in a protected class — and courts have consistently ruled that would include “potential, current and past employees.”
So the appeals court judge sent the case back to the lower court. And we all know what that means — an expensive trial or an expensive settlement.
Probably would have been cheaper to have offered Gerner the sweetheart deal her male cohorts received.
The case is Gerner v. County of Chesterfield. For the full opinion, go here.
