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Wage discrimination occurs when a person or business discriminates between employees in pay, including overtime, bonuses, and retirement benefits. Gender is the most common form of wage discrimination, often due to unconscious bias. Legislation such as Title VII of the Civil Rights Act and the Equal Pay Act aim to prevent wage discrimination, but exceptions exist for factors such as seniority and production quality. Victims of wage discrimination can file a complaint with the U.S. Equal Employment Opportunity Commission.
Wage discrimination describes employment practices in which a person, firm, or business discriminates between employees in the area of pay. Wage discrimination is not just limited to annual pay. Overtime pay, bonuses, vacation, time off, and even retirement benefits can be affected by wage discrimination.
The most widespread form of wage discrimination is found in gender. In many cases, companies pay women less than men to perform the same jobs with similar tasks and responsibilities. The wage gap between men and women has been a controversial issue for many years.
For many years, researchers have attempted to determine the reasons why women are often paid less than men. Some researchers believe that wage discrimination is not always the result of sexist beliefs. In some cases, employers may be influenced by an unconscious bias in the assessment of skills and abilities between men and women. Numerous studies have revealed that even with identical resumes, men are simply viewed more favorably. Studies have also revealed that income inequality is not the result of qualifications or choices, but is often simply based on gender.
Title VII of the Civil Rights Act of 1964 deals with wage discrimination. The act makes it illegal to discriminate in any aspect of employment. This includes compensation, salary, retirement plans and fringe benefits.
Another important piece of legislation against wage discrimination is the Equal Pay Act. Under the Equal Pay Act, employers must ensure that men and women receive fair and equitable pay for equal work. The jobs need not be identical, however, they must be the same in terms of job content. Despite legislation such as the Equal Pay Act, wage discrimination continues.
Salary differences are allowed on the basis of various factors. For example, a pay gap is legal when the employer bases the difference on seniority. Employers with a bona fide retirement system can pay their employees under that system.
Employers can also differentiate based on the quantity or quality of production. This is especially prevalent in positions where commissions include a percentage of salary. In this case, an individual may be paid more based on higher sales volume. Additionally, an employee’s education, experience, and training can also justify a wage differential.
Individuals who are victims of wage discrimination can file a complaint with the U.S. Equal Employment Opportunity Commission. The commission ensures that employers comply with federal policies and regulations. In addition, the commission provides legal support to employees who are treated unfairly. Over the years, there have been numerous lawsuits and class action settlements due to wage discrimination.
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