Portal:United States Court of Appeals for the Fifth Circuit

“ Pay disparities can of course exist for any number of reasons, including disparities that are rational in relation to value added or driven by the pool of labor available. But what we do not accept are pay disparities due to the employee’s race or sex. And that is the problem here: Sarah Lindsley has put forth a prima facie case of sex discrimination. It is undisputed that she was paid less than all three men who preceded her as food and beverage director of the Omni hotel in Corpus Christi, Texas. ”

“ As we shall explain, Lindsley may not use these pay comparators from other Omni locations to establish a prima facie case under the Equal Pay Act. But she may do so under both Title VII and the Texas Labor Code.
Under the Equal Pay Act, a plaintiff must show that the pay violation occurred within a single “establishment.” 29 U.S.C. § 206 (d) (1) . The governing regulations explain that the term “establishment” “refers to a distinct physical place of business rather than to an entire business or ‘enterprise’ which may include several separate places of business. ”

“ Generally, each Omni hotel location functions separately. It is undisputed that the general manager at each Omni property is the primary force behind all new hires, even if corporate must be on board. Unlike the school district in Marshall, which hired janitors on a district-wide basis subject to a wage agreement, Omni hires on a property-by-property basis and has no wage agreement. And the job duties of each food and beverage director differ by location. ”