Equal Pay and Compensation Discrimination
Equal pay and compensation discrimination occurs when an employee's wages are based not on the employee's job title or performance, but on the employee's race, sex, national origin, religion, age or disability. A number of federal laws exist to protect employees from equal pay and compensation discrimination.
The Equal Pay Act
The Equal Pay Act (EPA), which prohibits wage inequities between men and women, was passed in 1963 as an amendment to the Fair Labor Standards Act. The EPA applies to most private employers, as well as all state, local and federal governments. In addition to salaries, "wages" under the EPA include fringe benefits such as employee discounts, bonuses, expense accounts, profit sharing plans, retirement plans and benefits.
The EPA requires that both sexes be paid equally for performing the same job. Two jobs will be regarded as equal even if they are not identical, so long as both jobs are in the same establishment and require equal skill, effort and responsibility. Employers may pay different wages for substantially similar jobs only if the wage disparity has a legitimate basis. An employer may justify paying unequal salaries to men and women only if the employer can prove that the salaries are based on seniority, merit, or quantity or quality of service.
Other Federal Protections
The following laws apply to federal, state and local governments, as well as private employers with fifteen or more employees. Unlike the EPA, the following laws do not condition a finding of wage discrimination on the requirement that two employees hold the same job.
- Title VII. Title VII of the Civil Rights Act of 1964 (Title VII) prohibits compensation discrimination on the basis of race, sex, national origin and religion.
- The ADEA. The Age Discrimination in Employment Act of 1967 (ADEA) prohibits compensation discrimination on the basis of age.
- The ADA. The Americans with Disabilities Act of 1990 (ADA) prohibits compensation discrimination on the basis of disability.
Retaliation
All federal equal pay provisions prohibit retaliation by employers. Retaliation occurs when an employer punishes or otherwise treats differently an employee who refuses to participate in or reports instances of wage discrimination.
Reporting Equal Pay and Compensation Discrimination
All instances of wage discrimination should be reported to the U.S. Equal Employment Opportunity Commission (EEOC). The EEOC enforces the EPA, as well as all federal equal employment opportunity regulations, practices and policies. A charge of compensation discrimination may be filed by any individual who legitimately believes that his or her employment rights have been violated. Additionally, an individual, agency, or organization may file a charge on behalf of the affected individual.
Potential Damages
A victim of equal pay and compensation discrimination may also file a private lawsuit against his or her employer. Under Title VII, the ADEA and the ADA, an employee seeking to sue privately must first file a complaint with the EEOC. Successful litigants may recover lost wages, liquidated damages, reasonable attorneys fees and costs. If an employer is found to have acted willfully in committing wage discrimination, an employee may be awarded punitive damages. Additionally, employees suing under Title VII, the ADEA and the ADA may recover compensation for pain and suffering.