Women and Fair Pay: Laws and Proposed Legislation
The Equal Pay Act of 1963
The Equal Pay Act prohibits wage discrimination based on sex by requiring employers to pay men and women the same pay when they are doing the same job. Equal work is defined as work that requires equal skill, effort and responsibility and is performed under equal working conditions. The U.S. Equal Employment Opportunity Commission (EEOC) enforces the Equal Pay Act. Complaints may be filed with the EEOC, or lawsuits may be brought in federal court.
Although lawsuits brought under this act have reaped millions of dollars in wage increases and back pay, the Equal Pay Act does not allow people to win compensatory or punitive damages (see below). In addition, it is difficult to use class actions for groups of employees under the Equal Pay Act.
Title VII of the Civil Rights Act of 1964
This act prohibits discrimination on the basis of race, color, religion, national origin and gender in employment. Title VII has been used with some success to win pay increases for people who are underpaid because their jobs are primarily filled by women, such as secretaries, nurses and librarians. Due to historical discrimination, these jobs are often paid less than jobs filled primarily by men that require similar levels of skill, effort, responsibility and working conditions.
Claims under Title VII must be filed with the EEOC within 180 days of the alleged discriminatory act. Successful plaintiffs may be awarded back pay, lost benefits and damages of up to a maximum of $300,000, depending on the size of the employer.
To date, courts have generally applied Title VII fairly narrowly to situations in which the jobs done by men and women were different, but similar. Additional legislation (see below) may be necessary to resolve pay inequities between dissimilar jobs.
If you have questions regarding time limits for filing, call 1-800-669-4000 (or 1-800-669-6820 for TDD) to be connected to the nearest EEOC field office.
State Anti-Discrimination (Fair Employment Practice) and Pay Equity Laws
Many states have their own version of Title VII anti-discrimination laws. In states or localities that have their own anti-discrimination laws, charges must be filed with the appropriate state or local agency. In these jurisdictions, charges may then be filed with the EEOC within 300 days of the alleged discriminatory act, or 30 days after receiving notice that the state or local agency has finished processing the charges, whichever is earlier. These laws are important because they allow plaintiffs to pursue their cases in either state or federal court.
Several states and localities have also enacted laws that require the jurisdiction to study pay disparities between men and women, and implement pay equity. Most of these laws apply only to the employees of the jurisdiction. Minnesota’s law is the broadest, covering all public employees.
Paycheck Fairness Act (proposed)
This federal legislation would correct weaknesses in the Equal Pay Act by amending it to: 1) prohibit employers from penalizing employees for sharing information about their salaries; 2) make it easier to file class action suits; and 3) allow compensatory and punitive damages. Compensatory damages make the person “whole” (or place them in the position they would have been in without the discrimination) and consist of both monetary losses and non-monetary losses, such as pain and suffering. Punitive damages may be awarded to punish the employer and deter it from future discriminatory conduct.
The Paycheck Fairness Act would also direct the Department of Labor to develop and distribute information such as voluntary pay guidelines for implementing pay equity.
Fair Pay Act (proposed)
The Fair Pay Act is designed to expand Title VII by more explicitly addressing pay inequities between dissimilar jobs. It amends the Equal Pay Act by requiring employers to pay equal wages to employees in equivalent jobs. The act would apply to both public and private employers.
In addition, the Fair Pay Act requires employers to submit reports to the EEOC with wage information and prohibits retaliation against employees or others who discuss wages or pursue their rights under the act.
