As pay equity has drawn more attention in recent years, employers need to stay abreast of the patchwork of federal, state, and local laws related to pay equity issues. Importantly, employers should understand the varying standards for protected characteristics, appropriate comparators, and accepted defenses under the varying laws of different jurisdictions. At a high level, this post summarizes the federal and state legal frameworks for pay equity claims and highlights the important differences in analyzing such claims.
Under the Equal Pay Act of 1963 (EPA), employers cannot discriminate on the basis of sex with respect to compensation. More specifically, the EPA prohibits employers paying lower wages to an employee performing equal work on jobs that require equal skill, effort, and responsibility, and are performed under similar working conditions at the same establishment. Title VII of the Civil Rights Act of 1964 prohibits employers from discriminating against employees (including with respect to compensation) on the basis of race, color, religion, sex (including pregnancy and sexual orientation), and national origin with respect to compensation. In addition to federal law, certain state laws also prohibit discrimination in pay based on varying protected classes, including: sex, sexual orientation, gender, gender identity or expression, race, color, ethnicity, national orientation, religion, creed, familial status, marital status, veteran status, domestic victim status, disability, and/or age. Employers should be mindful of the protected classes in the states where they operate.
To prove a claim under the EPA, an employee must show that the jobs being compared are “substantially equal”. Unlike the EPA, there is no requirement under Title VII that the jobs being compared must be “substantially equal”; instead, Title VII focuses on “similarly situated” employees. In 21 states[1], plaintiff-employees must show that they were paid less for “equal work” to prove a pay discrimination claim. In Montana and Washington, the standard is “equivalent/similar work”. But, in Arizona, Illinois, and Maryland the standard is “same work”. At least six states[2] evaluate equal pay claims with the “substantially similar work” standard. Finally, at least eleven states[3] use the “comparable work” standard to compare employee compensation for equal pay claims.
These varying standards for proving pay discrimination create nuanced differences in the analysis of these claims. Courts will typically look at the skill, effort, responsibility, and working conditions to determine whether a proffered comparator is “substantially equal”, “equal work”, “equivalent/similar work”, “same work”, “substantially similar”, or “comparable work”. While two jobs may be considered comparable under one standard, they may not be under another. This is an important point for employers seeking to conduct pay audits with the goal of minimizing risks related to pay discrimination claims. Audits should be tailored to the protected classes and the legal standard for comparators in the employer’s relevant jurisdiction(s).
In addition to the differing protected classes and varying standards for comparators, different pay equity laws also provide differing defenses for pay differentials. Under the EPA, employers can rely on four justifications: (1) a seniority system, (2) a merit system, (3) a system that measures earnings by quantity or quality of production, and (4) any other factor other than sex. Employers must prove that the justification actually motivated the compensation decision and accounts for the entire differential. The fourth justification under the EPA – any factor other than sex – is a catchall justification that allows employers to explain pay differentials with non-discriminatory reasons such as education, training, or experience. However, some states have limited or eliminated this justification. For example, in Colorado and Massachusetts “any other factor other than sex” is not a justification for pay differentials under the state pay equity laws. In California, the justification is limited to bona fide factors other than sex, race, or ethnicity that are job-related, consistent with business necessity, and not based on or derivative of a sex, race, or ethnicity-based factor.
Employers should pay attention to this patchwork legal landscape for pay discrimination claims, as what may be considered lawful differences in pay under one law may be unlawful pay discrimination under another legal standard.
[1] Alabama, Connecticut, Delaware, Florida, Georgia, Hawaii, Indiana, Iowa, Kansas, New Mexico, Minnesota, Nebraska, Nevada, New Hampshire, New Mexico, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, and Wyoming.
[2] California, Colorado, New York, Massachusetts, New Jersey, and Oregon.
[3] Arkansas, Idaho, Kentucky, Maine, Missouri, North Dakota, Oklahoma, Puerto Rico, South Dakota, Tennessee, and West Virginia.
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- Overtime Exemptions
- Overtime Pay
- Overtime Regulations
- Overtime Rule
- Overtime Wages
- OWBPA
- Oxford Health Plans
- PAGA
- Paid Family Leave
- Paid Family Medical Leave
- Paid Interns
- Paid Leave
- Paid Sick Leave
- paid time off
- Paid Vaccine Leave
- Pandemic
- Pandemic Unemployment Assistance
- Parental Leave
- Patent
- Patient Protection and Affordable Care Act
- Patricia Shiu
- Pattern and Practice
- Paulsen v. Renaissance Equity Holdings
- Pay
- Pay and Promotions
- Pay Data
- pay disclosure
- Pay Discrimination
- Pay Equity
- Pay Reporting
- pay scale
- Pay Secrecy
- Pay Transparency
- Pay/Compensation
- Paycheck Deductions
- Paycheck Fairness Act
- Paycheck Protection Program
- Payroll Audit Independent Determination Program
- Payroll Debit Cards
- Payroll Taxes
- PBGC
- PCA
- PCC Structurals
- PCORI
- PDLL
- Penalties
- Penalty
- Pennsylvania
- Pennsylvania Minimum Wage Act
- Pension Plans
- Peoplemark
- PeopleSmart
- Perfectly Clear Doctrine
- Perfectly Clear Successor
- Performance and Accountability Report
- Period of Restoration
- Personal Jurisdiction
- Personal Jurisdiction; FLSA; Class Actions; Collective Action; General Jurisdiction; Specific Jurisdiction; Rule 23
- Personnel Policies
- Personnel Records
- Persuader Activity
- Persuader Agreements
- Persuader Rule
- Peter B. Robb
- Peter Schaumber
- Peter Sung Ohr
- Petition
- PEUC
- Phaladelphia Fair Practices Ordinance
- Philadelphia
- Pier 1 Imports
- Pitts v. Terrible Herbst
- Pizza Hut
- PLA
- plan sponsors
- Policies
- Portal-to-Portal Act
- Position Statement
- Post-Accident
- Poster Rule
- POWADA
- Poway Academy
- PPACA
- PPACA Checklist
- PPACA Timeline
- Practical Training
- Pre-Adverse Action Notice
- Pre-Adverse Action Requirements
- Precedent
- Predictable Scheduling
- Preemption
- Pregnancy Disability Leave
- Pregnancy Discrimination
- Pregnancy Discrimination Act
- Pregnancy Leave
- Pregnant Workers Fairness Act
- Preliminary Injunction
- Premium Pay
- Prenatal Leave
- Prescription Drug
- Prescription Drugs
- Prescription Medication
- Prevailing Wage
- Primary Beneficiary Test
- Prior Salary
- Privacy
- Private Equity Fund
- Privilege
- PRO Act
- Procedure
- Profanity
- Professional Responsibility
- Profiles in Diversity
- Progressive Discipline
- prohibition
- project labor agreement
- Property Rights
- Proposed Rule
- Proposed Rulemaking
- Proposed Rules
- Proposition 22
- Protected Activities
- Protected Activity
- Protected Concerted Activity
- Protecting Older Workers Against Discrimination Act
- Protective Order
- Protest
- provision
- PTO
- Public Accommodation
- Public Accommodations
- Public Bargaining
- Public Charge
- Public Entity
- Public Policy
- PUMP Act
- Punitive Damages
- Purchase Agreements
- Purple Communications
- PWFA
- Qualified Plans
- Quarantine
- Questioning
- Quickie Election
- Quickie Elections
- Race Discrimination
- Racial Equity
- Range
- Raytheon
- Reasonable Accommodation
- Reasonable Accommodations
- Recess Appointments
- Recordkeeping
- recruiting
- Reduction-in-Force
- Register Guard
- Regular Rate
- Regular Rate of Pay
- Regulation
- Regulations
- Regulatory Compliance
- Rehabilitation Act
- Reilly Moore
- Reimbursement
- Reimbursements
- release
- Religion
- Religious Accommodation
- Religious accommodation; Title VII; SCOTUS; Supreme Court; Third Circuit
- Religious Accommodations
- Religious Beliefs
- Religious Discrimination
- Religious Freedom Restoration Act
- Religious Institutions
- remedies
- Remote Work
- remote workforce
- Reopen Workplace
- Reopening Business
- Reopening Workplace
- Repeal
- report
- Reporting
- Reporting of Group Health Plans
- Reporting Pay
- Representation Election
- Representation Elections
- Representation Fairness Restoration Act
- Reprisal
- Reproductive Loss Event
- Reproductive Loss Leave
- Reproductive Rights
- Rescind
- RESPECT Act
- rest breaks
- Restaurant
- Restaurant Industry
- Restaurants
- Restoring Balance and Fairness to the National Labor Relations Board
- restriction
- Restrictive Covenants
- Restrictive Covenants Act
- Retail
- Retail Litigation Center
- Retaliation
- Retirement Plans
- Retirement Savings
- Return to Work
- Revenue Procedure 2013-12
- Revenue Ruling 2014-9
- Ricci v. DeStefano
- Richard Griffin
- RICO
- RIF
- RIFs
- right of first refusal
- Right to Disconnect
- Right to Know
- Right to Work
- Right-To-Sue
- Rising Star
- Rite Aid and Lamons Gasket
- Robert Quackenboss
- Roland Juarez
- Roland Juarez; Los Angeles Business Journal
- Roland M. Juarez
- Rollovers
- Roth
- Rounding Policy
- Rounding Time
- Rule 23
- Rule 68 Offer
- Rule-Making
- Rulemaking
- Ryan A. Glasgow
- Ryan Bates
- Ryan Glasgow
- Sabbath
- Safety
- Safety Incentives
- Salary
- Salary Basis Test
- Salary History
- Salary History Bans
- Salary History Inquiries
- Salary Inquiry
- Salary Reduction
- Sales Commissions
- Same-Sex
- Same-sex couples
- San Francisco
- San Francisco Fair Chance Ordinance
- Sanjee Weliwitigoda
- Sara Harlow
- Sarbanes-Oxley
- SB 459
- SB 553
- SB 95
- SB-973
- SBA
- SBC
- SCA
- Scabby
- Scale
- Scheduling Letter
- Schneiderman
- School Closings
- Scope Of Coverage
- Scott Brown
- Scott H. Kimpel
- Scott Nelson
- SCOTUS
- Sealed Records
- SEC
- Second Circuit
- Secondary Boycotts
- Section 125
- Section 1557
- Section 1983
- Section 203
- Section 2802
- Section 302
- Section 7
- Section 7 Rights
- Secure Scheduling
- Security
- Security Screenings
- Seff v. Broward County
- SEIU
- Self-Insured Health Plans
- Senate Bill 1162
- Separation Agreements
- Settlement
- Settlement Agreement
- Settlement Agreements
- Settlement Disclosure
- Seventh Circuit
- severance
- Severance Agreements
- Severance Payments
- Severe Injury Report
- Sex Discrimination
- Sexual Harassment
- Sexual Orientation
- SFFA
- Shaena Rowland
- Shannon S. Broome
- Sharon Block
- Sharon Goodwyn
- Shelter in Place
- Short-Time Compensation Program
- Shutdowns
- Sick Leave
- Sick Pay
- Silica Standards
- Single employer
- SIR Dashboard
- Sixth Circuit
- Slow the Spread
- Social Distancing
- Social Media
- Social Media Evidence
- Social Media Policy
- Solicitation Policy
- Solicitation/Distribution Policy
- Southern California Pizza Co.
- Speak Out Act
- Specialty Healthcare
- Specific Jurisdiction
- Spirituality Programs
- Spokeo
- Spoliation
- Spousal Rights
- Standard of Review
- Standing
- Staples
- Starbucks
- state court
- state legislation
- Statistical Audits
- Statute of Limitations
- Statute of Repose
- Statutes of Limitations
- Staub v. Proctor Hospital
- Stay Violations
- Steering Claims
- STEM
- Stengart v. Loving Care Agency
- Stephen Pattison
- Stewart Acuff
- Stillborn
- Strategic Objectives
- Strategic Plan
- Stray Markings
- Stray Remarks
- Strike
- Strike Plans
- Strike Tactics
- Students for Fair Admissions
- SUB Payments
- Subcommittee on Health
- Subject-Matter Jurisdiction
- Subpoena
- Subpoena Duces Tecum
- Substantial Compliance
- Successor Bargaining Duty
- Successor Company
- Successor Employer
- Successor Employer Duty to Bargain
- Successor Liability
- Suitable Seating
- Summary of Benefits and Coverage
- Super Lawyers
- Supervisor
- Supplemental Paid Sick Leave
- Supply Chain
- Supreme Court
- Susan Wiltsie
- Suspension
- Suzan Kern
- Systemic Discrimination
- Systemic Enforcement
- Taxpayer Responsibility Accountability and Consistency Act
- TCPA
- Technatomy Corporation
- Telecommuting
- Telephone Consumer Protection Act
- Telework
- Temporary Employees
- Temporary Reinsurance Program
- Temporary Workers
- Tenth Circuit
- Terence Connor
- Terrence Flynn
- Tesla
- Test Factor
- Testing
- Texas
- Texas Constitution
- Texas Lawyer
- Texas Legal Awards
- Texas Mutual v. Ruttiger
- Texas Regulatory Consistency Act
- Texting
- The Board
- The Boeing Company
- The Opportunity to Work Ordinance
- Third Circuit
- Third-party Liability
- Thompson v. North American Stainless
- Thriving in Their 40s
- Time Rounding
- Timekeeping
- Tip
- Tip Credit
- Tip Pooling
- Tip Sharing
- Tipped Employees
- Tipped Workers
- Tipping Policies
- Tips
- Title III
- Title IX
- Title VII
- Title VII of the Civil Rights Act of 1964
- Tolling
- Top Insurance Cases
- TRAC
- Trade Secrets
- Trade Secrets & Non-Competes
- Trademark
- Traditional labor
- Trailblazer
- Training
- Training Programs
- Transgender
- Transgender Rights
- Transparency
- TransUnion
- Tratree
- Traxler v. Multnomah County
- Trial Management
- TRICARE
- Trucking Industry
- Trump Administration
- Trump Rule
- Tyler S. Laughinghouse
- Typicality Requirement
- U.S. Senate
- U.S. Senate Finance Committee
- UAW
- Uber
- Uber Drivers
- ULP
- ULP Charge
- UNC
- Unconscionability Doctrine
- Undocumented Workers
- undue hardship
- Unemployment
- Unemployment Benefits
- Unemployment Compensation
- Unemployment Discrimination
- Unemployment Insurance
- Unfair Labor Charge
- Unfair Labor Practice
- Unfair Labor Practices
- Uniform Glossary
- Unilateral Change
- Union
- Union Apparel
- Union Button
- Union Dues
- Union Election
- Union Elections
- Union Information Request
- Union Insignia
- Union Logo
- Union Organizing
- Union Organizing and the NLRB
- Union Rat
- Union Representation
- Union Representation Elections
- Union Sticker
- Unions
- United States v. Windsor
- University of North Carolina
- Unlawful Insistence
- Unlimited Vacation
- Unsuccessful Assisted Reproduction
- UPMC Braddock
- US Chamber of Commerce
- US Supreme Court
- USAction
- USCIS
- USDA
- Use or Lose Rule
- USERRA
- Vacation
- Vacation Pay
- Vacation Scheduling
- Vaccination
- Vaccine
- Vaccine Incentives
- Vaccines
- Valley Hospital Medical Center
- Variant
- VBA
- VCP
- Venue
- Veterans Preference Act
- VETS-100A
- VETS-4212
- VEVRAA
- Victoria Lipnic
- Video
- Viking River
- Virginia
- Virginia Business Magazine
- Virginia Center for Inclusive Communities
- Virginia Employment Legislation
- Virginia Human Rights Act
- Virginia Labor Law
- Virginia Law
- Virginia Lawyers Weekly
- Virginia Marijuana Laws
- Virginia Overtime Wage Act
- Virginia Wage Payment Act
- Virginial Lawyers Weekly
- Virus
- Visa Waiver
- Vital Industry
- Volks Rule
- Voluntary Incentive
- Voter List
- VW
- Wage & Hour
- Wage and Hour
- Wage and Hour Exclusion
- Wage Equality Act
- Wage Fixing
- Wage Inquiries
- Wage Investigation
- Wage Payment
- Wage Penalties
- Wage Reduction
- Wage Statement
- Wage Theft
- Wage Theft Prevention Act
- Wage Transparency
- Waiter
- Waiting Period Rules
- Waiver
- Waivers
- walk around
- Walling v. Portland Terminal
- Wang v. Chinese Daily News
- WARN
- WARN Act
- Washington DC
- We Can Help
- Weapons
- Web Accessibility
- Web Designer
- Webinar
- Website
- Website Accessibility
- Weight Restrictions
- Weingarten
- Wellness Programs
- Wesson
- West Virginia Workplace Freedom Act
- WHD
- Whistleblower
- Whistleblowers
- White Collar Exemption
- William Emanuel
- William J. Emanuel
- Wilma Liebman
- Windsor Decision
- Withdrawal of Recognition
- withholding requirements
- Witness Statements
- Women
- Women In Leadership
- Women of Influence
- Women’s Equality Act
- Work Schedule
- Work Transfers
- Work-Sharing
- Worker Misclassification
- Worker Protection
- Worker Safety
- Workers Bill of Rights
- Workers Compensation
- Workers' Compensation Insurance
- Workplace AI
- Workplace Diversity
- Workplace Investigations
- Workplace Monitoring
- Workplace Policies
- Workplace Privacy
- Workplace Rules
- Workplace Safety
- Workplace Technology
- Workplace Violence
- Workplace Violence Prevention
- WR Reserve
- Wrongful Discharge
- Year In Review
Authors
- Jessica N. Agostinho
- Walter J. Andrews
- Ian P. Band
- Ryan M. Bates
- Christy E. Bergstresser
- Theanna Bezney
- Jesse D. Borja
- Brian J. Bosworth
- Jason P. Brown
- M. Brett Burns
- Daniel J. Butler
- Christopher J. Cunio
- Jacqueline Del Villar
- Kimberlee W. DeWitt
- Steven J. DiBeneditto Jr.
- Robert T. Dumbacher
- Raychelle L. Eddings
- Elizabeth England
- Juan C. Enjamio
- Karen Jennings Evans
- Geoffrey B. Fehling
- Jason Feingertz
- Katherine Gallagher
- Ryan A. Glasgow
- Sharon S. Goodwyn
- Meredith Gregston
- Eileen Henderson
- Kirk A. Hornbeck
- J. Marshall Horton
- Roland M. Juarez
- Keenan Judge
- Suzan Kern
- Elizabeth King
- Stephen P. Kopstein
- Torsten M. Kracht
- James J. La Rocca
- Kurt G. Larkin
- Jordan Latham
- Tyler S. Laughinghouse
- Crawford C. LeBouef
- Michael S. Levine
- Michelle S. Lewis
- Brandon Marvisi
- Lorelie S. Masters
- Reilly C. Moore
- Michael J. Mueller
- J. Drei Munar
- Alyce Ogunsola
- Christopher M. Pardo
- Michael A. Pearlson
- Adriana A. Perez
- Kurt A. Powell
- Robert T. Quackenboss
- D. Andrew Quigley
- Michael Reed
- Jennifer A. Reith
- Amber M. Rogers
- Alexis Zavala Romero
- Zachary Roop
- Adam J. Rosser
- Katherine P. Sandberg
- Elizabeth L. Sherwood
- Cary D. Steklof
- C. Randolph Sullivan
- Veronica A. Torrejón
- Debra Urteaga
- Emily Burkhardt Vicente
- Kevin J. White
- Holly H. Williamson
- Susan F. Wiltsie