Pay equity is important to company success, not solely because it’s important to follow the law. There are many benefits to offering equal pay for equal work. This article will cover the definitions and benefits of pay equity, as well as offer an easy-to-use table of pay equity laws in each state.
What is pay equity?
Pay equity is a concept of labor rights which posits that individuals should earn equal pay for equal work. Put into practice, pay equity is meant to resolve wage inequality based on sociopolitical identity markers—gender, race, and other factors.
The roots of pay equity come from first-wave feminism—a movement from the mid-nineteenth to early-twentieth century which sought women’s rights for voting and pay equity, among other legal protections.
Though the goal of equal pay for equal work has arguably not been fully realized, we’ve come a long way. The last 150 years have seen major changes. It was once common to offer completely different compensation for the same work based on race or gender.
Why is pay equity important?
The main goal of pay equity is to create a more fair workplace. It is ethical to pay equal wages for equal work. Offering equal compensation is a crucial step toward creating a more equitable society.
Beyond ethics, pay equity serves important functions in creating a peaceful workplace for all members of society. Within an employment organization, pay equity inspires loyalty and trust between employees and employers. When employees are treated fairly, they are more likely to feel happy with their work—and happy employees perform better.
But equal pay offers more than productivity. Providing equal pay gives employers the ability to hire a more diverse workforce. Diversity is important, and it yields many benefits to organizations:
Increases profitability
Increases depth of customer knowledge
Reduces employee turnover
Reduces conflicts
Advances company reputation
Pay equity laws state-by-state
State or Jurisdiction | Protected Class(es) | What qualifies as equal work? | When are pay differences allowed? | Geographical limits for pay differential? | Can employers inquire about salary history? |
|---|---|---|---|---|---|
Federal | Sex | Equal responsibility, skill, and effort are performed in comparable working conditions | When pay is related to seniority, merit, quantity of production, quality of production | Same establishment | Not specified in federal law |
Gender Race | Jobs that “require equal skill, effort, education, experience, and responsibility, and performance under similar working conditions” | When pay is related to seniority, merit, quantity of production, quality of production | Same location | Employers can ask for salary history, but cannot retaliate against a candidate who refuses to share their salary history. | |
Gender | “Work of comparable character or work in the same operation, business, or type of work in the same locality” | When the “reasonable demands of the position…require a distinction” on the basis of an identity trait | Same location | Not addressed | |
Gender | Work “in the same establishment for the same quantity and quality of the same classification of work” | Any “reasonable” pay difference when exercised “in good faith” so long as it is not based on sex | Same establishment or location | Not addressed | |
Gender | Work that “requires equal skill, effort, and responsibility and performed under similar working conditions” | When related to a “bona fide factor” is job-related and is consistent with business necessity | Not specified in state law | Not addressed | |
Ethnicity Gender Race | “Substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions” | When pay is related to seniority, merit, quantity of production, quality of production or a factor other than sex | Neither permitted nor prohibited | Not allowed, but a candidate can offer salary history if unprompted. | |
Gender | “Substantially similar work, regardless of job title, based on a composite of skill; effort, which may include consideration of shift work; and responsibility" | When pay is related to seniority, merit, quantity of production, quality of production, geographical location, education, training, experience, or required travel | Yes, but must be applied reasonably | Not permitted. Employers must also include compensation in job postings. | |
Gender | Work that “requires equal skill, effort and responsibility, and which are performed under similar working conditions” | When pay is related to seniority, merit, quantity of production, quality of production or a factor other than sex | Not specified in state law | Not allowed | |
Gender | “Equal work on a job that requires equal skill, effort, and responsibility and that is performed under similar working conditions” | Differentials “ based on a seniority or merit system, a system that measures earnings by quantity or quality of production, or any factor other than sex” | Same workplace | Not allowed | |
DC | Pay discrimination is not allowed under non-discrimination statute | Not applicable | Not applicable | Not applicable | Not addressed |
FL | Sex | Equal responsibility, skill, and effort are performed in comparable working conditions | Differentials “ based on a seniority or merit system, a system that measures earnings by quantity or quality of production, or any factor other than sex” when exercised “in good faith” | Not specified in state law | Not addressed |
GA | Sex | “Comparable work on jobs which require the same or essentially the same knowledge, skill, effort and responsibility” | Differentials “ based on a seniority or merit system, a system that measures earnings by quantity or quality of production, or any factor other than sex” | Same establishment | Not addressed |
Sex | “Equal work on jobs the performance of which requires equal skill, effort, and responsibility, and that are performed under similar working conditions” | Differentials “ based on a seniority or merit system, a system that measures earnings by quantity or quality of production, a bona fide occupational qualification, or any permissible factor other than sex” | Same establishment | Not allowed | |
Sex | “Jobs which have comparable requirements relating to skill, effort and responsibility” | “Differentials which are paid pursuant to established seniority systems or merit increase systems, which do not discriminate on the basis of sex” | Same establishment | Not addressed | |
African-Americans Sex | “The same or substantially similar work on jobs the performance of which requires substantially similar skill, effort, and responsibility, and which are performed under similar working conditions” | Differentials “ based on a seniority or merit system, a system that measures earnings by quantity or quality of production, or any factor other than sex, race, or any “factor that would constitute unlawful discrimination under the Illinois Human Rights Act” | Same county | Not allowed | |
IN | Sex | Equal responsibility, skill, and effort are performed in comparable working conditions | Differentials “based on a seniority or merit system, a system that measures earnings by quantity or quality of production, a bona fide occupational qualification, or any permissible factor other than sex” | Same establishment | Not addressed |
Age Color Disability Gender identity National origin Religion/creed Sex Sexual Orientation | Jobs that “require equal skill, effort, and responsibility, and which are performed under similar working conditions” | Differentials based on a seniority or merit system, a system that measures earnings by quantity or quality of production, a bona fide occupational qualification, or any permissible factor other than “age, race, creed, color, sex, sexual orientation, gender identity, national origin, religion, or disability of such employee” | Same establishment | Not addressed | |
Sex | Jobs that “require equal skill, effort and responsibility, and which are performed under similar working conditions” | Differentials “ based on a seniority or merit system, a system that measures earnings by quantity or quality of production, a bona fide occupational qualification, or any permissible factor other than sex” | Same establishment | Not addressed | |
Sex | “Jobs which have comparable requirements relating to skill, effort and responsibility” | “Differentials which are paid pursuant to established seniority systems or merit increase systems, which do not discriminate on the basis of sex” | Same establishment | Not addressed | |
Pay discrimination is not allowed under non-discrimination statute | Not applicable | Not applicable | Not applicable | Not addressed | |
Sex | “Comparable work on jobs that have comparable requirements relating to skill, effort and responsibility” | Differentials “which are paid pursuant to established seniority systems or merit increase systems, which do not discriminate on the basis of sex” | Same establishment | Not allowed, but a candidate can offer salary history if unprompted. | |
Gender IdentitySex | “Work of comparable character or work on the same operation, in the same business, or of the same type.” Also prohibited is the act of “providing less favorable employment opportunities based on sex or gender identity.” | Pay descrepancies that are based on a seniority or a merit system, a system based on quantity or quality, jobs requiring different skills, abilities, or that perform different duties, services, or performed at different times of day, or other “bona fide” reason that is not based on “sex or gender identity” | Same county | Not allowed | |
Gender | “Work that requires similar skill, effort, and responsibility, and is performed under similar working conditions” | Differences based on a seniority system, geographical location, production, sales, revenue-based system, merit system, travel requirement, or relating to an employee's education, training, or experience | Same geographic area | Not allowed | |
Sex | Work that requires similar skill, effort, and responsibility, and is performed under similar working conditions | Differentials based on a seniority or merit system, a system that measures earnings by quantity or quality of production, a bona fide occupational qualification, or any permissible factor other than sex | Allowed without stipulations | Yes. State law even prohibits localities from enacting salary history bans. | |
Sex | Work that “requires equal skill, effort, and responsibility, and which are performed under similar working conditions” | Differentials “pursuant to a seniority system, a merit system, a system which measures earnings by quantity or quality of production, or a differential based on any other factor other than sex” | Not specified in state law | Not addressed | |
MS | Not discussed in state law | Not applicable | Not applicable | Not applicable | Not addressed |
Women | Work “in the same establishment for the same quantity and quality of the same classification of work” | Differentials based on “seniority, length of service, ability, skill, difference in duties or services performed, difference in the shift or time of day worked, hours of work, or restrictions or prohibitions on lifting or moving objects in excess of specified weight, or other reasonable differentiation, or factors other than sex, when exercised in good faith” | Same establishment | Not addressed. | |
Women | Pay for “equivalent service or for the same amount or class of work or labor” | Not specified | Same establishment or place of employment | Not addressed | |
Sex | “Jobs which require equal skill, effort, and responsibility under similar working conditions” | Differentials based on “ an established seniority system; a merit increase system; or a system which measures earning by quantity or quality of production or any factor other than sex” | Same establishment | Not addressed | |
Sex | Work that “requires equal skill, effort and responsibility and which is performed under similar working conditions” | Differentials based on a seniority system, merit system, quality or quantity of work, or based on any factor other than sex | Same establishment | Not addressed | |
Sex | “Work that requires equal skill, effort, and responsibility and is performed under similar working conditions” | Differentials based on seniority, merit, performance, expertise, shift differentials, or other factor other than sex” | Not specified in state law | Not addressed | |
AgeAncestryColorDisabilityDomestic partnership status Gender identity or expression Genetics Marital status National origin Pregnancy or breastfeeding Religion/creed Sex Sexual Orientation | “Substantially similar work, when viewed as a composite of skill, effort and responsibility” | Differentials based on “a seniority system, a merit system, or bona fide factors other than the characteristics of members of the protected class” | All of an employer’s operations or facilities | Not allowed | |
Sex | Equal responsibility, skill, and effort are performed in comparable working conditions | Compensation based on a seniority or merit system or system based on quantity or quality of production | Same establishment | Not addressed | |
Age Disability Domestic violence history status Familial status Genetics Marital status Military status National origin Race Religion or creed SexSexual orientation | Work that “requires equal skill, effort and responsibility, and which is performed under similar working conditions” | Differentials based on a seniority system, merit system, quality or quantity of work, or based on any factor other than sex. | Same geographical region— no bigger than a county | nOT ALLOWED | |
NC | Equal pay and pay discrimination is not direcly addressed, but a general non-discrimination statute exists. | Not applicable | Not applicable | Not applicable | Not addressed |
Gender | “Jobs that have comparable requirements relating to skill, effort, and responsibility” | Differentials based on “seniority systems, systems that measure earnings by quantity or quality of production, merit systems, or a bona fide factor other than gender” | Same establishment | Not addressed | |
Age Ancestry Color National origin Race Religion Sex | Work that “requires equal skill, effort, and responsibility, and which are performed under similar conditions” | Differentials based on a seniority system, merit system, system based on quality or quantity of production, or any factor other than race, color, religion, sex, age, national origin, or ancestry” | Not specified in state law | Not addressed | |
Women | “Jobs which have comparable requirements relating to skill, effort and responsibility” | Differentials based on “ a seniority system; a merit system; a system which measures earnings by quantity or quality of production; or on any factor other than sex” | Not specified in state law | Not addressed | |
Age Color DisabilityGenderMarital status National origin Race Religion Sex Sexual orientation Veteran status | “Work of comparable character” | Differentials based on a seniority system, a merit system, a system which measures earnings by quantity or quality of production, or based on location, travel, education, or training | Within the same workplace location | Not allowed | |
Sex | “Work under equal conditions on jobs which require equal skills” | Differentials based on “a seniority, training or merit increase system that does not discriminate on the basis of sex” | Same establishment | Not addressed | |
Sex | Work that “requires the same skill, effort, and responsibilities under similar working conditions” | Differentials based on “a bona fide seniority or merit system, system based on quality or quantity of production, education, training, experience, or other reasonable factor other than sex” | Not specified in state law | Not allowed | |
RI* | Sex | Work that requires similar skill, effort, and responsibility and is performed under similar working conditions | Differentials based on “a bona fide seniority or merit system, system based on quality or quantity of production, education, training, experience, or other reasonable factor other than sex” | Not specified in state law | Not addressed |
SC | Pay discrimination is not allowed under non-discrimination statute | Not applicable | Not applicable | Not applicable | Not addressed |
Sex | “Comparable work on jobs which have comparable requirements relating to skill, effort, and responsibility” | Differentials based on “seniority systems, job descriptive systems, merit increase systems, executive training programs” | Same location | Not addressed | |
Sex | Jobs that “require comparable skill, effort and responsibility, and that are performed under similar working conditions” | Differentials “based on a seniority system, a merit system, a system that measures earnings by quality or quantity of production, or any other reasonable differential that is based on a factor other than sex” | Same establishment | Not addressed | |
TX | Pay discrimination is not allowed under non-discrimination statute | Not applicable | Not applicable | Not applicable | Not addressed |
UT | Pay discrimination is not allowed under non-discrimination statute | Not applicable | Not applicable | Not applicable | Not addressed |
Sex | Work that “requires equal skill, effort, and responsibility and is performed under similar working conditions” | When pay is related to seniority, merit, quantity of production, quality of production or a factor other than sex | Not specified in state law | Not allowed | |
Sex | Jobs that “require equal skill, effort, and responsibility, and which are performed under similar working conditions” | When pay is related to seniority, merit, quantity of production, quality of production, or a factor other than sex | Within any establishment | Not addressed | |
Gender | Jobs that “require similar skill, effort, and responsibility, and the jobs are performed under similar working conditions” | When pay is related to seniority, merit, quantity of production, quality of production, or a “bona fide” factor other than sex | Only if qualified by a regional difference in compensation | Not allowed | |
Sex | “Work of comparable character, the performance of which requires comparable skills” | Differentials based on a “seniority or merit system,” or based on factors other than sex | Not specified in state law | Not addressed | |
WI | Pay discrimination is not allowed under non-discrimination statute | Not applicable | Not applicable | Not applicable | Yes. State law even prohibits localities from enacting salary history bans. |
Sex | Jobs that “require equal skill, effort and responsibility and which are performed under similar working conditions” | When pay is related to seniority, merit, quantity of production, quality of production, or a factor other than sex | Same establishment | Not addressed |
* Rhode Island equal pay rules will change January 1, 2023 to include these additional protected classes: race, color, religion, sexual orientation, gender identity or expression, disability, age (40 years or older), or ancestry.
