Salary Employment Law

Salary regulations are a critical component of employment law for employers and employees alike. The U.S. Equal Employment Opportunity Commission ("EEOC") is the Federal body that enforces many of the salary employment laws that protect individuals in the workplace. When it comes to the monetary compensation of an individual, the EEOC prescribes methods to determine if the employer violated any employment laws or protections. The Equal Pay Act of 1963 ("EPA") prohibits disparities in salary based on classifications such as gender and race. The EPA imposes a requirement that employers pay individuals who perform substantially equivalent work the same salary or wage regardless of gender. Labor law salary regulations do allow salary variations based on allowable classifications such as seniority or quantity and quality of work. Employment law requirements mandate that when a man and a woman perform the same job that requires equal skill, equal effort, and equal responsibility, and where the two perform under similar working conditions, there must be no wage differential based on the gender of the employees.

Fast Facts

  • Disparity of salaries between men and women is illegal if the two employees perform substantially the same job under the same conditions with the same level of expertise.
  • To bridge a salary gap, one employee must be paid more in order to gain salary equality. It is not acceptable to decrease the salary of an employee to match that of a lesser-compensated peer.

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