Comply with Equal Pay Laws

Key Points

  • In addition to federal law, several states and municipalities have passed laws prohibiting an employer from paying different wages based on sex (or other protected classes) for the same or similar work, subject to certain exceptions. Such laws may also contain additional provisions regarding wage disclosure or salary history inquiries.
  • As a result of these laws, an employer should implement clear policies that prohibit wage discrimination and promote pay transparency. Employers should also provide training to supervisors and managers on making compensation decisions based on legitimate and nondiscriminatory criteria, such as merit, skill, experience and performance.
  • To ensure compliance with these laws, an employer may want to consider auditing its pay practices, so that it can identify any discrepancies and correct any unlawful wage differentials.

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