What Is the Equal Pay Act of 1963?
The Equal Pay Act of 1963 is a U.S. law that prohibits employers from paying different wages to men and women who work under similar conditions and whose jobs require the same level of skill, effort, and responsibility. It is part of the amended Fair Labor Standards Act of 1938.1 The act was an important milestone in gender equality, though of course wage gaps by gender persist.
- Employers must give men and women the same pay and benefits when their jobs are substantially equal.
- When they don’t, employees can file a lawsuit and potentially be awarded back pay, a pay adjustment, and reimbursement of legal fees.
- Employers have four main defenses to Equal Pay Act claims; these defenses have been interpreted in different ways by different courts.
Understanding the Equal Pay Act of 1963
Based on the principle of equal pay for equal work, the Equal Pay Act applies to all forms of compensation. Salary, wages, overtime, bonuses, and benefits all factor in, as do stock options, profit-sharing plans, vacation and holiday pay, vehicle allowances, and expense reimbursements.2
The U.S. Department of Labor conducted studies before the act was passed and found that men were earning more than women for the same job in some industries. One key finding, according to reporting by The New York Times, was that some women were earning $8 to $20 less per week than men for the same office work.3 In 2021 dollars that’s about $70 to $180 per week or about...
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