paydiscrimination

Pay discrimination refers to unequal compensation for employees performing substantially similar work based on protected characteristics or other non-work-related attributes. It includes differences in wages, salaries, bonuses, and benefits that cannot be explained by legitimate factors such as experience, performance, or tenure. While the term is often associated with the gender pay gap, pay discrimination specifically denotes unlawfully biased pay decisions rather than overall economic trends alone.

Forms of pay discrimination include unequal starting salaries, slower progression in raises, bias in promotions, and differential access to high-paying assignments or bonuses. Disparities may occur in hiring, merit reviews, raises, and total compensation, and can persist even when job duties are the same.

Legal framework: Many jurisdictions prohibit wage discrimination under equal pay or anti-discrimination laws. In the United States, the Equal Pay Act and related statutes prohibit paying different wages for substantially equal work based on sex or other protected characteristics, with enforcement by labor departments and courts and remedies such as back pay. Similar protections exist elsewhere, often requiring objective criteria to justify pay differences and protecting complaints.

Causes and remedies: Causes include biased performance evaluations, limited access to higher-paying roles, unequal negotiation dynamics, and insufficient pay transparency. Remedies include pay audits, standardized pay scales, transparent criteria for raises and promotions, non-discrimination policies, and access to grievance procedures and legal recourse.

Global perspective: Standards and data availability vary by country, making measurement challenging. Increasing transparency, regular pay audits, and stronger enforcement are common approaches to reducing pay discrimination and achieving fair compensation across sectors.