I suspect you have already tried, but set the z-index to your relatively positioned element, which is lower than your absolutely positioned z-index element as the first test.
If this does not work, you need to make sure that both elements are in the same stacking context . In IE, whenever you apply a CSS position rule to an element, it generates a new stacking context inside that element. This means that the z-index will be respected only within this element. Children and children in other stacking contexts with lower z-indices may still be higher.
In your case, you need to either put a drop-down list or a button in the same stacking context or apply z-index to two elements that generate their own separate stacking contexts.
Pat
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