Ignoring Pay Disparity Claims: A Risky Strategy For Healthcare Employers

The EEOC sued The University of Texas Medical Branch (UTMB), a university health system in Galveston, Texas, based on allegations of equal pay law violations.

From October 2023 to January 2026, a longtime female employee, working as a solutions architect, was allegedly paid $12,250 less per year than a male colleague with the exact same job.

The female employee allegedly had significantly more experience and relevant education than the male colleague. She held four information technology-related certifications and a bachelor's degree in computer information systems. The male coworker has no previous experience in the healthcare industry.

The female employee also earned a Master of Science in Business Analytics, but did not receive a pay raise despite requesting a formal salary review and achieving the degree, which was included in the preferred qualifications for her job. When she ultimately received a pay increase, her male colleague was also given a raise, so then her salary was $112,750, but her male coworker's was $125,000.

The EEOC alleges the pay disparity violates the Equal Pay Act of 1963 and seeks back pay and liquidated damages on behalf of the female employee.

Source: https://www.eeoc.gov/newsroom/eeoc-sues-utmb-pay-discrimination; https://thedailytexan.com/2026/07/19/ut-medical-branch-sued-for-alleged-gender-pay-discrimination/

Commentary

This matter exemplifies how a simple employee request can mushroom into litigation. In the above case, an employee identified a pay disparity; asked for a pay review; and when the employee's request went unanswered, the issue became a federal lawsuit under the Equal Pay Act pursued by the EEOC.

The Equal Pay Act 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.

Prevention for healthcare organizations includes acting on employee requests related to pay disparity. Additionally, organizations should not wait for employees to test their own pay scales in relation to their coworkers.

A new hire's starting salary may slowly increase through routine annual increases or pay raises from time to time. An unexamined pay disparity at hire can then persist, undetected, through unevaluated routine raises.

The final takeaway is healthcare organizations should act proactively to evaluate pay scale, detect disparities, and act to address them.

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