Employment laws are constantly evolving and pay equity remains a hot topic of discussion. Some question whether there really is a pay equity issue while others live through regularly being at a disadvantage. Pew Research Center found that the gender pay gap has remained stable for more than 20 years. While stable sounds like a positive word, their research implies that the pay inequality between men and women is similar to the numbers from 2002, with women earning 82 percent of what their male counterparts earn.
Pay inequality persists due to discriminatory practices that are rampant even today. (Image credit – Freepik)
The Equal Pay Act of 1963 and other employment laws attempt to narrow the pay equity gap but the adoption of practices to assist in enforcement often falls to employees. While the Equal Employment Opportunity Commission (EEOC) works to correct any violations, employees do not often speak up for fear of the repercussions. It is up to employers, managers, and HR teams to follow through with employment laws.
What Are Some of the Employment Laws in the U.S.?
Employment laws exist to safeguard the interests of workers and ensure fair hiring and pay equity for all employees. The Equal Employment Opportunity Commission looks into the complaints filed with its office when employment law violations occur. The Equal Employment Opportunity Commission also requires employers to file annual EEO-1 reports that contain data pertaining to the demographics of its workforce. It applies to all private sector employers with more than 100 employees, or federal contracts meeting their criteria, who employ more than 50 workers.
Equal Pay Act of 1963
The act mandates equal pay for men and women for identical or “substantially equal” jobs. The term substantially equal sets this law apart from other employment laws as it applies to jobs with the same title as well as those that have similar job descriptions. The law covers pay inequality in terms of the base wage as well as any additional bonuses or allowances, from overtime pay to reimbursements and benefits. The Equal Pay Act prohibits the reduction of pay to equalize wages; instead, companies must switch the lower wages to the higher numbers they are offering.
The Equal Pay Act applies to all employees working for employers covered under the Fair Labor Standards Act (FLSA). Those who experience a gender pay gap have up to 2 years to approach the Equal Employment Opportunity Commission.
Title VII of the Civil Rights Act of 1964
This act is another form of legislation that protects against pay inequality. It prohibits any discriminatory beliefs and actions based on race, religion, sex, or national origin. According to the Federal Trade Commission, Title VII of the Civil Rights Act covers all employment domains, including recruitment, selection, termination, and other decisions that pertain to employment laws.
The Equal Employment Opportunity Commission maintains guidelines for discriminatory practices and does not cover substantially similar jobs, instead focusing on the same job titles. The employment law applies to employers with 15 or more employees. Workers who want to file a complaint have 180 days to do so unless their state laws provide a longer period.
Age Discrimination in Employment Act of 1967
This employment law oversees age-based discrimination within the workplace. The ADEA looks at any discriminatory practices in any capacity of employment, against those who are 40 or older. The EEOC guidelines are very clear whether directed towards employers, employment agencies, labor organizations, or any other hiring portals. Conditions of the employee’s pension benefit plans are also clearly highlighted. Employees have 180 days to file a complaint unless otherwise extended by the state.
The Rehabilitation Act of 1973
Employment laws also cover those with disabilities and ensure their interests are maintained whether in employment or pay equity. The Rehabilitation Act of 1973 is a U.S. federal law that prohibits discrimination on the basis of disability in programs and activities that receive federal financial assistance. Specifically, section 501 of the act focuses on employment discrimination based on disability in federal agencies while section 505 provides guidelines to follow through with the regulations. The Americans with Disabilities Act (ADA) of 2008 establishes employment laws for employers in the private sector, state and local governments, and other public bodies. Again, employees have 180 days to file a complaint under the ADA unless mentioned differently under state laws.
What Can Companies Do about the Pay Inequality?
Employment laws exist to protect employees against discrimination and provide equal footing for everyone in the country. Progress for all sections can mean increased productivity, improved employee satisfaction, low turnover rates, better quality of life for all employees, etc. Apart from adhering to the Equal Pay Act and other laws, there are many things companies can do about the gender pay gap or other pay inequality.
- Restructure hiring practices: Review the guidelines for hiring, remove any discriminatory criteria or language, and engage a diverse hiring team.
- Promote transparency in compensation: New considerations like the pay transparency law encourage companies to be honest about the pay they can offer for a role, rather than basing it on any internally biased criteria or the employee’s history.
- Conduct regular pay equity audits: Carefully asses the current workforce demographic against their job description and pay and review if all workers are compensated fairly and equally.
- Conduct training and sensitivity programs: Managers play an important role in promotions and their internal biases shouldn’t hold employees back.
- Set performance review criteria: Establish clear and defined criteria that employees can work towards, so their performance and promotion reviews are done on equal grounds.
- Seek feedback: Discuss current efforts and future plans with employees who can give you feedback on the success of your pay equity plans or what you can do about the gender pay gap. External consulting agencies can help as well.
The EEOC receives about 80,000 job discrimination complaints every year. There are likely more cases of such discrimination but it is not always possible to be the one to seek assistance. Employees should exercise their right to reach out to the Equal Employment Opportunity Commission when they do not find other solutions to pay inequalities or any other discriminatory practices protected under employment laws.
If such a big step feels overwhelming, employees can always start small by approaching HR and broaching the conversation of equal pay. Acknowledging the issue is always the first step towards resolving it.