Equal Pay Requirements

April 13, 2006

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Another part of federal wage and hour law that you, as an employer, must be mindful of is known as equal pay for equal work. In a nutshell, the Equal Pay Act (a part of the federal wage and hour laws) says you cannot pay a person of one gender, who is doing the same or substantially the same work as another employee of the opposite gender, less money.

If you employ Peter and Paula as data entry clerks, and they were hired at the same time, you cannot pay Peter more because he is a male.

If Peter is paid more because he has extra job duties or better qualifications than Paula, those might be valid reasons for paying Peter more.

It's important to understand that the Equal Pay Act applies only to pay differences between men and women. It does not address pay inequities motivated by race, color, religion, or national origin. Pay inequities related to protected groups other than gender groups are covered by federal antidiscrimination law.

To comply with equal pay requirements, you need to: