Bence v. Detroit Health Corp.

Bence v. Detroit Health Corp.

Opinion

 [*1025]  WEICK, Senior Circuit Judge.

Plaintiffs-Appellants Denise Bence, et al., have appealed to this court from a judgment in the United States District Court for the Eastern District of Michigan, Southern Division, in favor of their employer, Detroit Health Corporation, defendant-appellee in their action, asserting a claim for violation of the Equal Pay Act of 1963, 29 U.S.C. § 206 [**2]  (d)(1). Jurisdiction was based on 28 U.S.C. § 1331. For the reasons hereinafter, stated, we reverse.

Plaintiffs-Appellants ("employees") are former employees of Detroit Health Corporation ("employer"). At all relevant times employer operated a chain of health spas, each of which was divided into a men's division and a women's division which operated on alternate days. Men operated the  [*1026]  men's division and women operated the women's division. Employer's managers and assistant managers were paid, except for a six month period in 1975, by commissions based on gross sales of memberships. Male managers were paid 7.5% of the individual spa's gross sales of memberships to men. Female managers were paid 5% of gross sales of memberships to women. Male assistant managers received 4.5% of gross sales to men. Female assistant managers received 3% of gross sales to women.

Over the course of employer's life, the gross volume of membership sales to women was 50% higher than the gross volume of membership sales to men. ² There was no difference in the job descriptions of male and female managers or assistant managers and they performed their jobs under [**3]  similar working conditions. The total remuneration received by males and females was substantially equal although the females made more sales than the males.

Employees filed suit, contending that the different commission rates violated 29 U.S.C. § 206(d)(1), which provides:

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