How to Comply with the Equal Pay Act of 1963

Introduction

What is the Equal Pay Act of 1963? Let’s take a look:

• Purpose: The Equal Pay Act (EPA) is a federal law that prohibits sex-based wage discrimination. It requires employers to pay men and women equally for equal work in jobs that require equal skill, effort, and responsibility under similar working conditions.

• History: The EPA was signed into law on June 10, 1963, by President John F. Kennedy. It was the first federal law to prohibit sex discrimination in the workplace.

• Key provisions: The EPA prohibits employers from paying men and women different wages for:

  • The same job

  • Jobs that require equal skill, effort, and responsibility under similar working conditions

  • Jobs that are substantially equal, even if they have different titles

  • Jobs that are located in different establishments of the same employer, if the establishments are located within the same metropolitan area

The EPA does not prohibit all wage differences between men and women. For example, employers can pay different wages if the difference is based on a seniority system, a merit system, a system that measures earnings by quantity or quality of production, or a factor other than sex.

The EPA is enforced by the Equal Employment Opportunity Commission (EEOC). If you believe that you have been discriminated against in pay, you can file a complaint with the EEOC. The EEOC will investigate your complaint and, if it finds that you have been discriminated against, it will try to reach a settlement with your employer. If no settlement can be reached, the EEOC may file a lawsuit on your behalf.

The EPA has been successful in reducing wage discrimination between men and women. However, there is still a gender pay gap in the United States. In 2020, women earned 82 cents for every dollar earned by men. The EPA is an important tool for fighting wage discrimination and closing the gender pay gap.

Here are some additional resources on the Equal Pay Act:

• Equal Pay Act of 1963: https://www.eeoc.gov/statutes/equal-pay-act-1963

• Equal Employment Opportunity Commission: https://www.eeoc.gov/

• How to File an Equal Pay Complaint: https://www.eeoc.gov/how-file-charge-employment-discrimination

Key Provisions

• Coverage: The EPA applies to all employers who have at least two employees, regardless of size or industry.

• Wage discrimination: The EPA prohibits employers from paying men and women different wages for:

  • The same job

  • Jobs that require equal skill, effort, and responsibility under similar working conditions

  • Jobs that are substantially equal, even if they have different titles

  • Jobs that are located in different establishments of the same employer, if the establishments are located within the same metropolitan area

• Exceptions: The EPA does not prohibit all wage differences between men and women. For example, employers can pay different wages if the difference is based on:

  • A seniority system

  • A merit system

  • A system that measures earnings by quantity or quality of production

  • A factor other than sex

• Enforcement: The EPA is enforced by the Equal Employment Opportunity Commission (EEOC). If you believe that you have been discriminated against in pay, you can file a complaint with the EEOC. The EEOC will investigate your complaint and, if it finds that you have been discriminated against, it will try to reach a settlement with your employer. If no settlement can be reached, the EEOC may file a lawsuit on your behalf.

• Damages: If you win an EPA lawsuit, you may be awarded back pay, front pay, compensatory damages, and punitive damages.

The EPA is an important law that helps to ensure that women are paid equally for equal work. If you believe that you have been discriminated against in pay, you should contact the EEOC to file a complaint.

How Businesses Can Comply with the Equal Pay Act?

Here are some examples of how businesses can comply with the Equal Pay Act of 1963 (EPA):

• Conduct regular pay equity analyses. Businesses should regularly compare the pay of men and women who do the same or substantially similar work. This can be done by comparing salaries, bonuses, commissions, and other forms of compensation.

• Establish clear and objective pay policies. Businesses should have clear and objective pay policies that are based on factors such as skill, experience, and performance. These policies should be applied consistently to all employees, regardless of sex.

• Train managers on the EPA. Managers should be trained on the EPA and how to comply with it. This training should help managers to understand the law and how to avoid making discriminatory pay decisions.

Here are some fictional examples of how businesses located across the United States can comply with the EPA:

• A small business in California could conduct a regular pay equity analysis to ensure that its male and female employees are paid equally for doing the same or substantially similar work. The business could also establish clear and objective pay policies that are based on factors such as skill, experience, and performance. Additionally, the business could train its managers on the EPA to help them avoid making discriminatory pay decisions.

• A large corporation in New York could use a software program to automate its pay equity analysis process. The program would compare the pay of all employees who do the same or substantially similar work, and it would flag any potential pay disparities. The corporation could then investigate the disparities and take corrective action if necessary.

• A non-profit organisation in Texas could establish a pay committee made up of employees from different departments and levels of seniority. The committee would be responsible for reviewing the organisation's pay policies and practices to ensure that they are fair and equitable.

It is important to note that some states have laws that go beyond the EPA. For example, California has a law that requires employers to provide employees with pay stubs that show their pay rate and the basis for their pay. Additionally, some states have laws that prohibit employers from asking about an applicant's salary history.

Businesses that operate in multiple states should be sure to comply with the EPA and any applicable state laws.

What Are Your Thoughts?

The Equal Pay Act is an important law that helps to ensure that women are paid equally for equal work. If you have thoughts on the law, we would love to hear them! Share your thoughts on Instagram or X with the hashtag #theindustryleader, or share a post to LinkedIn and tag us @TheIndustryLeader.

Together, we can help to close the gender pay gap.

What businesses need to know about the Equal Pay Act.

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