Equal Pay Act Applies to In-House Attorneys; Reinstatement is Appropriate Remedy

Yesterday, the Wisconsin Court of Appeals yesterday affirmed an order reinstating an in-house attorney who had been terminated.  This case applied federal law, so it should be of interest to all in-house counsel -- both terminators and terminatees. 

Defendant in Sands v. Menard contested the affirmance of an arbitration panel’s order requiring reinstatement of defendant’s former executive general counsel.  The arbitration panel had ruled that defendant violated the Equal Pay Act by paying plaintiff less than a similarly situated male employee and had retaliated against her for asserting her discrimination claims. 

In addition to compensatory and punitive damages, defendant was ordered to reinstate plaintiff. The opinion has a fairly long discussion regarding the standard of review, the application of anti-discrimination laws to in-house counsel and the appropriate remedies for violation of those laws.  The bottom line in the opinion is that the defendant failed: “to explain how Wisconsin law regarding clients’ rights to choose their attorneys, or the rules of professional conduct, could negate the remedies of wrongfully terminated employees under federal law.”  

This will probably give professional responsibility gurus a lot to discuss.