Pay and Benefits

Under one federal law, women and men have the right to receive equal pay if they perform equal work in the same workplace. This law covers most employees across both the public and private sectors and does not require a minimum number of employees. The law considers whether the jobs or work are “substantially equal,” not whether they are identical. Job content (not job titles) is what determines whether jobs are “substantially equal.” All forms of compensation 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 benefits. 

Another federal law also prohibits most employers with at least 15 employees from discriminating based on sex (among other categories like race, color, religion, and national origin) in pay and benefits. Under this law, however, there is no requirement that the jobs be “substantially equal.”

Employers covered by the Americans with Disabilities Act (ADA) are also prohibited from discriminating in employment (including pay) against qualified individuals with disabilities. Furthermore, under Section 503 of the Rehabilitation Act (Section 503), covered federal contractors and subcontractors are prohibited from discriminating in employment (including pay) against individuals with disabilities, and under the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA), they are prohibited from discriminating in employment (including pay) against protected veterans.

The following are examples of evidence that may demonstrate pay  discrimination: 

• discriminatory application of a wage policy or system, or wage-setting techniques; or
• intentionally lowering wages because of the protected status of the employees in the job.