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Press Release 09-04-2020

Covenant Healthcare Will Pay $104,707 to Settle EEOC Wage Discrimination Lawsuit

Saginaw-Based Health Care System Paid Female Employee Less Money Than Two Male Co-Workers, Federal Agency Charged

DETROIT -- Covenant Medical Center, Inc., doing business as Covenant HealthCare, a non-profit health care system based in Saginaw, Mich., will pay $104,707 and provide other relief to settle a sex wage discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the federal agency announced today.

According to the EEOC’s lawsuit, 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.

“As a matter of practice, companies should routinely assess their compensation policies to ensure that they compensate their employees lawfully,” said EEOC Trial Attorney Karen L. Brooks. “If men and women are performing the same work, federal and state law as well as common fairness insist they be equally paid — without regard to gender.”

The Detroit Field Office is part of the Indianapolis District Office, which oversees Michigan, Indiana, Kentucky and parts of Ohio.                                                  

The EEOC advances opportunity in the workplace by enforcing federal laws prohibiting employment discrimination. More information is available at www.eeoc.gov.  Stay connected with the latest EEOC news by subscribing to our email updates.