Equal Pay Act: Employers, Workers and Unions Text Size:

The Equal Pay Act requires that men and women receive equal pay for equal work that is performed within the same establishment. The law covers nearly all employees and employers. It also prohibits unions from taking any action that might cause an employer to violate the law.

Employee and Employer Coverage

The Equal Pay Act (EPA) prohibits sex discrimination by employers who pay more compensation to men than to women for performing substantially equal work. The law is designed to eliminate the gap in compensation that exists between men and women.

The EPA is part of the Fair Labor Standards Act (FLSA) that regulates the wages, hours of work and working conditions of employees who work for private and public employers and is enforced by the federal Equal Opportunity Employment Commission (EEOC).

The equal pay law covers virtually all private and public employees and employers including certain employee groups that are not covered by other provisions of the FLSA. If you are thinking of filing an equal pay claim, make sure you consult with an employment law attorney because there are some types of employers or work that are not covered under the equal pay law.

Employer Responsibilities

In addition to complying with the equal pay requirement, employers must keep records on each employee and on wages, hours or work, working conditions and employment practices. These records will be used for:

• Making periodic reports to the EEOC and other public agencies
• Compliance inspections by EEOC representatives
• Investigation of claims or suspected violations

Definition of "Establishment"

As previously mentioned, the EPA prohibits pay discrimination on the basis of sex "within any establishment." An establishment means a physically separate place of business that has authority to make personnel and pay decisions. An establishment does not mean an entire business, enterprise or employer that has several places of business.

The establishment requirement is sometimes difficult to understand because it is subject to different interpretation and application. Let's look at three examples. A clothing manufacturer operates several warehouses in difference cities. It also operates a warehouse attached to its headquarters building.

Example 1. A warehouse supervisor claims that she is paid less than her male counterpart who works at another warehouse. The employer claims that the difference in pay cannot be compared because they work at different warehouses. An investigation shows that the headquarters hires and sets the pay and maintains employee records for all warehouse supervisors. In this example, the pay rates of the warehouse supervisors can be compared because the headquarters and the warehouses are considered to be a single establishment.

Example 2. A warehouse worker claims that she is paid less than a male warehouse worker who works in a different city. The employer argues that the warehouses are separate establishments. The evidence shows that although the headquarters exercises control over warehouse supervisors, the wages of warehouse workers are determined by each warehouse supervisor. In this example, the wages of the warehouse workers in different cities cannot be compared because each warehouse is a separate establishment.

Example 3. A shipping clerk working in the headquarters' office claims that she is paid less than her male counterpart who works in the warehouse that is attached to the headquarters building. The evidence shows that although the jobs are essentially the same and are performed at the same location, they cannot be compared because the hours, pay and working conditions of the headquarters shipping clerk are controlled by the central personnel office while the hours, pay and working conditions of the warehouse shipping clerk are controlled by the supervisor of the attached warehouse.

Unions and the EPA

Employers are required to work with unions, trade associations and other labor organizations representing employees in dealing with grievances, labor disputes, wages, hours of work and working conditions. Under the EPA, a union cannot "cause or attempt to cause" an employer to discriminate against male and female employees on matters of pay or compensation. Unions are not often found to have violated this provision.

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