The Fair Pay Act Ensuring Equal Pay for Equal Work

At Salary.com, our mission is to make fair pay a reality. Unfortunately, achieving pay equity isn’t an overnight task but one that will take years to accomplish. This is further amplified when you look at the pay gaps that exist across the U.S.

There have been efforts to make pay equity a reality on a legislative front, however. The in particular has made strides in closing the wage gap across different demographics. Let’s see how it does this by analyzing what the Fair Pay Act is and what it means for employers.

What is the Fair Pay Act?

The Fair Pay Act requires that employers have equal pay for equal work within their organization. It defines equal work as jobs that take an equal amount of skill, effort, and responsibility for it to be performed. As well as this, similar working conditions need to be in place.

Essentially, if there are two workers who perform the same job in similar working conditions, they should receive the same amount of pay regardless of personal attributes such as gender or race. It is illegal for employers to pay workers differently because of any personal attribute.

The Fair Pay Act considers the requirements and job duties of a role when determining whether a job is substantially equal. If there are minor differences, it isn’t always enough to justify paying differently under the Fair Pay Act. With this in mind, let’s take a look at the key provisions of the Fair Pay Act and how it helps employers achieve pay equity.

The Key Provisions of the Fair Pay Act

There are several key provisions of the Fair Pay Act. If organizations can stick to these provisions, they will help to achieve pay equity within their organization. Key provisions include:

Pay Transparency

Employers must disclose the salary for positions upon the request of any applicant. As well as this, employees are able to freely discuss their salaries with other coworkers without consequence. When pay transparency occurs, it is much harder for employers to hide unequal pay practices.

An Enhancement in Accountability

The Fair Pay Act mandates employers to justify if there are any wage differences due to factors other than gender, race, or ethnicity. For example, employers could justify that they pay one employee more than the other based on merit. Holding employers accountable for how they pay their employees is key to achieving pay equity as there must be a valid reason for wage differentials.

Protection for Employees Against Retaliation

The Fair Pay Act protects employees if they choose to challenge wage discrimination or share wage information with others. Previously, an employer may penalize and punish them. Instead, employees have legal remedies available to them if they choose to push for pay equity within their organization.

We can’t cover every corner of the Fair Pay Act in this article, so we encourage you to read it for yourself to understand what other provisions exist. The underlying message is that it pushes for equal pay for equal work.

The Outlook for Pay Equity After the Fair Pay Act

The Fair Pay Act is a key component in the movement for achieving pay equity. Holding employers accountable for unfair pay practices goes a long way in helping women and minorities get the pay they deserve. Is it enough though to truly impact decades of pay discrimination?

Only time will tell when answering this question. Achieving pay equity is a collective effort, however, which means it needs all parties, from governments to regular citizens, to work together for change. Individuals must remain vigilant, and governments can introduce legislation to strengthen enforcement and close loopholes. With ongoing commitment, wage gaps can close, and pay equity will get ever nearer.

Overall, the future is looking bright for pay equity. With the Fair Pay Act in place, it lays a foundation for how employers should pay all their employees. Demand equal pay for equal work and make pay equity a reality today.