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BY LAURA MORSCH, CAREERBUILDER.COM Put a few thousand business executives in a room and you likely won't find many with the same educational backgrounds, industry experience or job descriptions.
However, employers can rebut Equal Pay Act challenges by showing that the contested pay differential is based on seniority, merit, quantity or quality of work produced or "any other factor other than sex". [2] [3] Courts disagree about whether an employee's prior salary information counts as "any other factor other than sex".
In Canadian usage, the terms pay equity and pay equality are used somewhat differently from in other countries. The two terms refer to distinctly separate legal concepts. Pay equality, or equal pay for equal work, refers to the requirement that men and women be paid the same if performing the same job in the same organization. For example, a ...
The terms compensation differential, pay differential, and wage differential (see wage dispersion or economic inequality) are also used in economics, but normally have a different meaning. They simply refer to differences in total pay (or the wage rate) in any context. [ 22 ]
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The Equal Pay Act of 1963 is a United States labor law amending the Fair Labor Standards Act, aimed at abolishing wage disparity based on sex (see gender pay gap). It was signed into law on June 10, 1963, by John F. Kennedy as part of his New Frontier Program. [ 3 ]
An audit study in 2007 found that, childless women receive 2.1 times as many callbacks than equally qualified mothers. Though it does not receive as much attention as the gender gap, motherhood is a significant quality that is discriminated against. In fact, the pay gap between mothers and non-mothers is larger than the pay gap between men and ...
In support of a limit on pay ratios, it has been claimed that an excessive wage ratio may not be in the best interest of company as it harms customer satisfaction and does not benefit long-term firm performance. [6] Nevertheless, as high wage ratios boost short-term firm profitability, [7] the need for a limit on pay ratios may be overstated.