Conduct a regular pay equity analysis and consistently correct any identified pay inequalities.The best way to ensure you meet the requirements of the Equal Pay Act is to: For instance, you might justify paying an employee a higher salary than one of their colleagues if they have a higher level of education or training, if they have substantially more experience working in the field, or if they have a higher level of responsibility. However, it does mean that if there are any discrepancies then you need to be able to justify higher salaries and prove that they have not been awarded on the basis of sex or gender. This doesn’t mean that you have to pay all employees working substantially equal jobs the exact same wage or salary. It is enough for them to be viewed as substantially equal. Īs we just mentioned, equal work relates to roles that require similar:Īccording to the Equal Pay Act, jobs do not have to be identical to be considered equal. Under the provisions of the Equal Pay Act of 1963, you have a responsibility as an employer to ensure that all your employees receive equal pay for equal work. Employer requirements under Equal Pay Act If there is an inequality in compensation between men and women, employers may not reduce the wages of either sex to equalize their pay. All forms of pay are covered by this law, including salary, overtime pay, bonuses, stock options, profit sharing and bonus plans, life insurance, vacation and holiday pay, cleaning or gasoline allowances, hotel accommodations, reimbursement for travel expenses, and additional fringe benefits. This means that if multiple individuals are performing substantially equal jobs that require similar levels of skill, effort, and responsibility, and under similar working conditions, then you must pay them the same wage or salary, regardless of gender. It also prohibits the employment of minors in “oppressive child labor”.Īccording to the Equal Pay Act, all employees have a right to pay equity and protection against sex-based compensation discrimination. This is a United States labor law that creates the right to a minimum wage, and “time-and-a-half” overtime pay when people work over forty hours a week. Enforced by the Equal Employment Opportunity Commission and the Department of Labor, the EPA serves as an amendment to the Fair Labor Standards Act of 1938. Essentially, the provisions of the act have been designed to ensure that all employees receive equal pay for equal work. The Equal Pay Act (EPA) is an employment regulation that was passed by Congress in 1963 and signed into law by President Kennedy later that same year. Employer requirements under Equal Pay Act.
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