Article

Equal Pay and Compensation Discrimination Rights

Equal pay rights can cover sex-based differences in salary, overtime, bonuses, benefits, and other compensation for substantially equal work.

7 min read

The Equal Pay Act Focuses on Substantially Equal Work

The federal Equal Pay Act generally prohibits an employer from paying an employee of one sex less than an employee of another sex for substantially equal work in the same establishment under similar working conditions. The jobs do not have to be identical, and job titles alone do not decide whether the work is substantially equal. Coverage and the correct comparison depend on the actual employment relationship, work location, and job facts.

Actual Duties Matter More Than Job Titles

The comparison looks at the skill, effort, and responsibility the jobs require, along with working conditions. Skill can include the experience, training, education, and ability required by the job; effort addresses the physical or mental exertion; and responsibility considers the degree of accountability. Save both formal job descriptions and evidence of the work employees actually performed because the two may differ.

Compensation Includes More Than Base Salary

Equal-pay review can include hourly wages or salary as well as overtime rates, commissions, bonuses, profit sharing, insurance, leave, retirement benefits, allowances, travel reimbursements, and other job-related benefits. A difference in one form of compensation can matter even when total take-home pay appears similar. The Equal Pay Act also does not permit an employer to reduce the higher-paid employee's wages to correct an unlawful difference.

Pay Differences Require a Fact-Specific Review

The statute recognizes pay differences based on a seniority system, merit system, a system measuring earnings by quantity or quality of production, or another factor other than sex. Whether an explanation fits the records and was applied consistently is a fact-specific question. Preserve written pay criteria, performance reviews, seniority records, production measures, offer materials, and the employer's explanation instead of assuming that every pay difference is unlawful.

Other Discrimination Laws May Also Apply

The EEOC explains that Title VII, the Age Discrimination in Employment Act, and the Americans with Disabilities Act can also prohibit compensation discrimination based on protected characteristics. Those laws do not use the Equal Pay Act's substantially-equal-job requirement, and a sex-based pay issue may involve both the Equal Pay Act and Title VII. Each claim has its own coverage rules, proof requirements, filing steps, and deadlines.

Equal Pay Act Deadlines Follow a Different Route

An employee alleging an Equal Pay Act violation does not have to file an EEOC charge before going to court. EEOC materials state that the general time limit is two years from the alleged unlawful compensation practice, or three years for a willful violation, and that filing an EEOC charge under the Equal Pay Act does not extend the court deadline. A related Title VII or other discrimination claim may require a timely agency charge, while state-law rules may differ.

Records to Preserve

Keep pay stubs, wage notices, offer letters, bonus and commission plans, benefit summaries, job postings, job descriptions, schedules, performance reviews, seniority records, written pay criteria, complaint records, and the dates and reasons given for pay decisions. Note the duties, work location, qualifications, and compensation of possible comparators using information you may lawfully keep. Do not take confidential, privileged, or proprietary records that you are not entitled to possess.

When to Get a Free Consult

Get a free consult if you learned that an employee of another sex may receive higher pay or benefits for substantially equal work, a pay explanation conflicts with job records, or a compensation concern was followed by discipline or job loss. This is general information, not legal advice; rights depend on coverage, actual job duties, work location, compensation records, the employer's explanation, timing, and applicable federal and state law.

Primary Sources

Think You Have a Case?

This article is general information, not legal advice. For a review of your situation, get a free consult with the YesLawyer team.

Get Your Free Consult

Related Resources