You may be doing the same work as someone else but receiving less pay for it. If that sounds familiar, compensation discrimination could be the reason. This type of unequal treatment can affect your salary, bonuses, benefits and overall financial growth at work.
Compensation discrimination is not limited to differences in job titles. It applies when employees perform substantially equal work and are paid differently due to sex, race, age, disability or other protected characteristics. Federal laws prohibit this, but many workers are not aware of their rights.
What payments are covered by the Equal Pay Act?
The Equal Pay Act and related laws protect more than just base salary. They apply to nearly every type of compensation an employee may receive.
- Overtime pay and bonuses: If you are working extra hours or receiving performance-based pay, those earnings must be equal for employees performing equal work.
- Stock options and profit sharing: Any opportunities to earn shares, ownership or bonuses from company profits must be distributed fairly among employees in similar positions.
- Vacation and paid leave: Your access to paid time off, including vacation and holidays, must be equal to that of coworkers doing the same job.
- Insurance and benefits: Health coverage, life insurance and retirement benefits should not differ based on your gender, age or other protected categories.
- Expense reimbursements and allowances: If your employer covers meals, lodging or travel, those reimbursements should not favor one employee over another without a valid reason.
- Non-wage perks: Things like company cars, housing stipends and flexible schedules can also be forms of compensation subject to equal pay protections.
Even if the job titles are different, the work performed may still qualify as substantially equal under the law. If you suspect you are being underpaid compared to coworkers doing the same work, it may be time to take a closer look. Obtaining legal guidance can be helpful in identifying whether compensation discrimination has occurred and exploring your next steps.