One of West Michigan's most popular social services non-profit organizations is answering a lawsuit filed in U.S. District Court that it discriminated against it's former lead attorney on the basis of sex.
Leaders at Hope Network denied in court documents they discriminated against former general counsel Allison Reuter by paying her male successor a higher salary.
For seven years, Reuter defended Hope Network as an attorney. Court documents show she managed legal issues "to minimize risk to Hope Network, oversaw litigation, corporate compliance, employment decisions and labor relations, provided direct legal services to Hope Network and its affiliates".
Now after resigning from the organzation, she's on the other side of the court room, suing the non-profit for discrimination. It's a set of allegations, the 13 Watchdog team found, Hope Network strongly denies.
Federal court documents show Reuter is suing for two different violations. Count 1 is an equal pay claim under the Fair Labor Standards Act. Reuter indicates she was hired by Hope Network in 2008 at a salary of $100,000. She indicates her successor was hired in 2015 for her position earning $150,000. The lawsuit indicates: "Reuter was paid significantly less than her male successor who had less experience, fewer skills and was not licensed in the State of Michigan and hired in at a significantly higher rate of pay than Plaintiff ever made during her tenure with Defendant."
In Count 2, Reuter says by being paid less than her successor, a male lawyer, the non-profit violated Michigan's Elliot Larson Civil Rights Act, "in that they willfully discriminated against Plaintiff because of her gender".
Reuter also indicated in her lawsuit she became aware that members of the executive team were receiving significantly higher bonuses than she was receiving as General Counsel. In 2014, she says her bonus was 4.9% at the same time executives were receiving "more than 25% bonuses up to 40% bonuses".
This month, Hope Network's attorneys responded to the lawsuit and indicated: "Defendants deny they have committed any wrongdoing."
"All of the actions complained of by Plaintiff were taken for legitimate and nondiscriminatory business reasons other than sex," Hope Network's Attorneys Sarah K. Willey and Daniel R. Schipper wrote.
The attorneys wrote that Reuter hired in to Hope Network in 2008 fearing her previous employer would eliminate her position. They indicate Reuter requested to be paid $100,000 and that market conditions affected the differential salaries.
"Plaintiff's gender played no role whatsoever in the determination of her salary," the defense attorneys wrote.
Hope Network, through its attorneys, denied its executives received bonuses of more than 25% percent of their salaries.
The case will continue through the Federal court system in early 2017.
