SLF LABOR AND EMPLOYMENT ALERT September 2006

The Equal Pay Act – A Trap for the Unwary

Most employers are familiar with laws that impact the employer-employee relationship. However, one law that is often overlooked is the Equal Pay Act of 1963 (“EPA”). The EPA is a Federal law which prohibits employers from discriminating against employees on the basis of their sex with regard to pay. Stated another way, the EPA requires that men and women receive equal pay for equal work. In passing the EPA, Congress intended to cover as many employers as possible and thus, unlike some of the statutes mentioned above, the EPA does not have a minimum employee threshold (i.e., 15 or more employees). Rather, all employees who are “engaged in commerce” (which includes virtually all employees) are covered by the protections of the EPA.

The EPA applies to employees of both sexes. Thus, both male and female employees may claim that employees of the opposite sex are paid at a higher rate in violation of the EPA. An employee claiming a violation of the EPA must prove that: (1) different wages are paid to employees of the opposite sex; (2) the employees do equal work which requires equal skill, effort and responsibility; and (3) the employees have similar working conditions.

The EPA is enforced by the U.S. Equal Employment Opportunity Commission “EEOC”). Employers should review their compensation system at least once per year to ensure that the requirements of the EPA are being followed.

EEO-1 Reports Due September 30

Employers are reminded that the annual EEO-1 Reports are due to the EEOC by September 30. The EEO-1 Report – formally known as the “Employer Information Report” – is a survey requiring many (though not all) employers to disclose a count of their employees by race, ethnicity and gender.

Labor Relations and
Employment Law
Robert J. Sniffen
rsniffen@sniffenlaw.com
211 East Call Street
Tallahassee, FL 32301
850.205.1996
850.205.3004 FAX