You must fairly compensate employees for their work. Under one Federal law, women and men have the right to receive equal pay if they perform equal work in the same workplace. Under this law, it does not matter how many employees you have, and most employees across both the public and private sectors are covered. The jobs or work being compared don’t have to be identical, but they must be what is considered “substantially equal.” Job content (not job titles) is what determines this. All forms of compensation are covered, meaning not only pay, but also benefits.

Other federal laws prohibit most employers with at least 15 employees (or at least 20 employees, with respect to age) from compensation discrimination based on race, color, religion, sex, national origin, age, disability, or genetic information. But, under these laws, there is no requirement that the jobs be “substantially equal.” Rather, discrimination may be proven when there is evidence of, for example:

  • discriminatory application of a wage policy or system, or wage-setting techniques that are discriminatory,
  • barriers to equal access to higher paying jobs,
  • wages being intentionally lowered because of the protected characteristic(s) of the employees in the job, or
  • a seemingly fair compensation policy or practice that has a significantly negative impact on employees in a protected class without a demonstration that the policy or practice is job-related and consistent with business necessity.

Furthermore, under an Executive Order, certain Federal contractors and subcontractors are prohibited from discriminating in employment decisions, including pay, on the basis of sex (as well as race, color, religion, sexual orientation, gender identity, national origin, disability or status as a protected veteran).

Questions? We’re here to help.

We are committed to helping you understand your responsibilities as an employer. The Office of Federal Contract Compliance Programs (OFCCP) and the U.S. Equal Employment Opportunity Commission (EEOC) work together to ensure equal pay.

For additional assistance, please contact:

Learn about OFCCP Learn about EEOC