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Equal Pay Laws

Title VII of the Civil Rights Act of 1964 prohibits discrimination based on race, color, sex, religion, or national origin. However, prior to its passage, pay discrimination on the basis of sex was outlawed under the Equal Pay Act of 1963. The Equal Pay Act requires that men and women be given equal pay for equal work in the same establishment. The jobs need not be identical, but they must be substantially equal. It is job content, not job titles, that determines whether jobs are substantially equal. Specifically, the EPA provides that 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. Pay differences can be justified on the basis of merit, seniority, quantity or quality of work, experience, or factors other than gender. Similar pay must be given for jobs requiring equal skills, equal responsibilities, or equal efforts, or for jobs done under similar working conditions. The Lilly Ledbetter Fair Pay Act law was signed in 2009 in response to a U.S. Supreme Court decision restricting the statute of limitations allowed under the Equal Pay Act for claiming pay discrimination based on sex. Under the Equal Pay Act, an employee alleging discrimination had up to 300 days to file a claim. The Fair Pay Act essentially treats each paycheck as a new act of discrimination. Pay discrimination need not be intentional to be unlawful. In correcting a pay differential, no employee's pay may be reduced. Instead, the pay of the lower paid employee(s) must be increased.