What Does the Equal Pay Act Do?

Though the gender wage gap has decreased over the past several decades, it hasn’t yet closed. As of 2024, women in the United States were still earning an average of 18% less than men.

One of many factors contributing to the persistent pay inequality is sex discrimination. In this article, we’ll explore the Equal Pay Act of 1963 (EPA), a law that attempts to address this problem by ensuring equal pay for equal work.

The EPA seldom provides the only legal protection for someone experiencing wage discrimination on the basis of sex. If you suspect your employer may not be paying you fairly because of your sex, consider speaking with a qualified employment attorney who can help you understand your options.

But first, let’s review some important information about the EPA.

What is the Equal Pay Act?

The EPA is a federal law that aims to eliminate compensation discrimination based on sex. President John F. Kennedy signed it into law as an amendment to the Fair Labor Standards Act of 1938 (FLSA), which regulates overtime, the minimum wage, and child labor.

The EPA prohibits employers from paying employees of one sex less than employees of the opposite sex for similar work, except under specific circumstances. “Pay” in this context includes all types of compensation, including non-wage components like benefits, stock options, and bonuses.

Similar Work

The EPA defines "similar work" using several criteria including:

• Skill: The experience, ability, education, and training needed to perform the jobs
• Effort: The amount of physical or mental exertion required to do the work
• Responsibility: The degree of accountability involved in the jobs
• Working conditions: The conditions of employment including physical surroundings and hazards
• Establishment: The distinct physical place of business

This means that jobs at the same place of business are considered substantially equal if they require similar or equal skill, effort, and responsibility under similar working conditions. This multi-factor analysis focuses on job content rather than job titles.

The EPA says that employers can’t generally pay employees of one sex less than opposite sex employees for substantially equal work. The jobs needn’t be identical. Rather, they must be substantially equal based on these criteria. And any differences must be insubstantial to the overall job for the comparison to be valid.

Exceptions to the Equal Pay Act

Under certain circumstances, however, the EPA permits unequal pay for substantially equal jobs. In these cases the wage differentials must be based on legitimate factors other than sex.

These may include:

• Seniority systems: Pay differences based on length of employment or service
• Merit systems: Compensation based on measured performance or achievement
• Quantity or quality of production: Pay based on output or productivity metrics

So, the EPA allows pay differences based on seniority, merit, quantity/quality of production, or other legitimate, non-discriminatory factors related to the job and business needs. But in order to be valid, they must be applied equally to all employees regardless of sex.

Which Employers Must Follow the EPA?

The EPA applies to virtually all employers, including public, private, nonprofit, and other entities. Specific limited exceptions, however, exist.

For example, very small businesses that don’t engage in interstate commerce and certain small farms may be exempt. Essentially, any employer engaged in commerce or in the production of goods for commerce is covered by the EPA.

EPA Enforcement

The Equal Employment Opportunity Commission (EEOC) is primarily responsible for enforcing the EPA. It investigates wage discrimination claims based on sex and may take legal action against employers who violate the EPA.

The Department of Labor (DOL) also plays a role in promoting compliance with the EPA through its Wage and Hour Division, which provides guidance and information to employers and employees about their rights and responsibilities under the equal pay law.

How Can I Prove Wage Discrimination Under the Equal Pay Act?

If you suspect you’re being paid less than a colleague of the opposite sex for performing substantially equal work, you may have an equal pay claim against your employer. Depending on the circumstances, you might want to sue them for discriminatory employment practices. Alternatively, you may want or need to file a claim with the EEOC.

There will likely be several ways you can proceed, as well as additional labor laws and procedural restrictions to consider. We examine some of these below, but you’ll want to consult with a local employment attorney to help you navigate the complexities surrounding a wage discrimination claim.

EPA Complaint

Although it’s not required, you may decide to file an EPA claim with the EEOC. The agency will attempt to resolve the issue through conciliation, which involves negotiating a settlement between you and the employer.

If conciliation fails, the EEOC can sue the employer on your behalf. It may seek remedies such as back pay, compensatory and punitive damages, and even injunctive relief to prevent future violations.

Title VII

Acts that violate the EPA often also violate Title VII of the Civil Rights Act of 1964 (Title VII). This federal law prohibits all forms of employment discrimination based on race, color, religion, sex, and national origin. This includes sex-based pay discrimination.

Unlike the EPA, Title VII requires employees to file a charge with the EEOC before pursuing a lawsuit. If Title VII conciliation fails, the EEOC may file a lawsuit on your behalf. Alternatively, it may issue a "Notice of Right to Sue." This allows you to bring an action independently.

State Law

Many states also have their own equal pay laws that complement the EPA. These labor laws often provide additional protections to help ensure pay equity.

For example, New York law prohibits wage discrimination based on sex, race, and national origin, and includes provisions for pay transparency.

Statutes of Limitations

Once you determine how you’d like to proceed, it’s important to act sooner rather than later. Each law may have its own statute of limitations. This dictates the timeframe within which you must file a claim. For example,

• EPA: Claims must be filed within two years of the discriminatory pay practice or within three years if the violation is willful
• Title VII: Charges must be filed with the EEOC within 180 days of the discriminatory act or 300 days if a state/local agency enforces a law prohibiting employment discrimination on the same basis

However, the Lilly Ledbetter Fair Pay Act extends the time limit for Title VII and other claims. It does this by resetting the filing period with each discriminatory paycheck received.

This 2009 law was named for a female worker who found out late in her career that she was earning less than her male colleagues in the same job. She sued for wage discrimination, but the Supreme Court ultimately ruled against her. It said she should have filed her complaint within 180 days of the first unfair paycheck.

In response, Congress passed the Lilly Ledbetter Fair Pay Act, which was signed into law by President Barack Obama.

Getting Legal Help

The gender pay gap is real. And it’s often even worse for Black and Latina women. This is due to compounded discrimination and occupational segregation based on sex and race. Needless to say, the problem is a complicated one.

Proving sex-based wage discrimination under the EPA can be challenging. Depending on the specifics in your situation, you’ll likely have several overlapping options at the state and federal level.

Consider enlisting the help of a legal advisor who can explain them and guide you through the process. FindLaw’s directory of employment attorneys makes this part easy. Just click on your state of employment to view contact, rating, and other information for local experts. You can also narrow your search results by city.

It’s important to find someone with whom you’re comfortable speaking confidentially. A trusted advocate to help you make informed decisions may just be your strongest ally at this critical time.