Equal Pay

Employees must be given equal pay for substantially equal work in all forms of compensation. Forms of compensation include salary, overtime, bonuses, stock options, profit sharing, life insurance, vacation, sick time, travel and accommodation expenses, etc. 

Ensuring Equal Pay

Job content, not title, determines whether jobs are substantially equal. Factors which assist in determining whether jobs are equivalent in terms of compensation include: 

• Skill: Experience, ability, education and training
• Effort: Amount of physical or mental exertion needed to perform the job
• Responsibility: The degree of accountability required in performing the job
• Working Conditions: Physical surroundings (temperature, fumes, ventilation, etc.) and hazards

When Are Pay Differentials Permitted?

When the pay is based on seniority, merit, quantity or quality of production, or a factor other than the employee’s protected class. 

Correcting Pay Differentials

No employee’s pay may be reduced; the pay of the lower paid employee must be increased.