G.Neil Tools To Manage And Motivate People Phone orders 800-999-9111Live Chat
Shopping Cart
    GNeil Library Customer Care My Account
 
Attendance Tracking Employee Records Performance Management Personnel Software Hiring & Recruiting Training & Development Labor Law & Compliance Workplace Safety Workplace Communications Motivation Recognition Greeting Cards
New ProductsWeb Specials 
Free eNewsletter
Enter Priority Number
Catalog Quick Order
-


Live Chat
Community Resources
Payroll Outsourcing Poster Guard Member Self-Service Website Chart of Posting ChangesFree Poster Audit
Click to verify BBB accreditation and to see a BBB report.

Connect with us on ...

Twitter

HR Forum Blog
HyperLink

Laws You Should Know, The Equal Pay Act

03/05/07

Not long ago, the EEOC settled a case with a university in Michigan. It seems that the lone female professor in a technical department was near the bottom in pay, though she ranked higher and had more seniority than four male colleagues. After pressure from the EEOC, the university agreed to raise her pay and throw in another $50,000 to make up for seven years of shortchanging her.

This is exactly the kind of situation the Equal Pay Act (EPA) was enacted to correct—to ensure that men and women get the same pay for the same work in the same workplace. And unlike other federal discrimination laws, many of which apply only to companies with fifteen or more employees, the EPA covers all employers covered by the Fair Labor Standards Act. Most likely, that includes you.

“Substantially” Equal
Employers need to do more than merely pay everyone in identical jobs the same salary or wages. You must pay men and women at the same rate for jobs that are substantially equal. Here’s what that means, according to the EEOC:

Employers may not pay unequal wages to men and women who perform jobs that require substantially equal skill, effort, and responsibility, and that are performed under similar working conditions within the same establishment.

Let’s look at each of the “big five” factors of equal pay:

Skill. Skill is measured by factors like the experience, ability, education, and training necessary to perform a job successfully. But you have to tie the factor to a job, so it makes no difference that one welder has a Ph.D. in anthropology while the other never finished high school. If both have equal training and ability in welding, both should get paid the same.
Effort. This is the exertion, mental or physical, required to do a job. If a job requires equal exertion, men and women need to get paid the same.
Responsibility. What are jobholders accountable for? If the responsibilities are the same, all other things being equal, they need to get paid the same.
Working conditions. These include physical factors like heat or cold, as well as exposure to hazards, like noxious fumes or dangerous working situations (e.g., erecting steel forty stories aloft).
Establishment. Usually, the EPA applies to jobs in a physically distinct place of business. In some cases, you need to consider different locations as one establishment. If a temp agency hires and pays employees, for example, sending them out to different locations, they may be one establishment for purposes of the EPA.

Different Pay for Different Factors
So when can you pay men and women differently for similar work done under similar conditions? When pay is based on seniority, merit, or quantity or quality of work. You can also pay differently based on any factor other than sex—including different levels of skill required to do a job, or different levels of exertion, responsibility, or working conditions.

One last wrinkle: If you must change wage or salary rates to close a gap between men and women, you can’t lower the pay of an employee—you must raise the rate of the one paid too little.