What is Wage Discrimination?

Wage discrimination occurs when employees performing substantially similar work do not receive equal pay due to improper reasons, like gender, race, age, national origin, disability, or other protected characteristics. Pay discrimination violates several federal and state employment laws designed to ensure fair compensation practices for paying employees.

Legal Framework Governing Wage Discrimination

Several key employment laws address wage discrimination in the United States, including:

1. The Equal Pay Act (EPA) – Enacted in 1963, the the federal Equal Pay Act mandates that men and women who perform substantially equal work in the same establishment must receive equal pay. Employers must base pay differences on legitimate factors such as seniority, merit, or productivity rather than gender.
2. Title VII of the Civil Rights Act of 1964 – This law prohibits wage discrimination based on race, color, religion, sex, or national origin. Title VII provides broader protection than the EPA because it applies to all forms of compensation, including salary, bonuses, stock options, and benefits.
3. The Americans with Disabilities Act (ADA) – The ADA prevents employers from discriminating against employees with disabilities regarding compensation. Employers must provide equal pay and reasonable accommodations unless it causes undue hardship to the business.
4. The Age Discrimination in Employment Act (ADEA) – Employees over the age of 40 are protected from wage discrimination based on age. This law ensures that older employees are not paid less solely because of their age.
5. State Wage Discrimination Laws – Many states have enacted their own equal pay laws, often providing broader protections than federal statutes. Some states require employers to be fully transparent about salary structures and prohibit them from asking about salary history during hiring.

If an employee can prove wage discrimination through examples enacted in the above laws, they could be able to file a lawsuit against their employer. The ability to prove pay discrimination will make their case stronger against discriminatory pay practices.

Wage Discrimination Examples

Wage discrimination can look like:

• Gender Wage Gap – One of the most widely discussed forms of wage discrimination is the gender pay gap, where women, on average, earn less than male employees for the same job. Despite legal protections, wage disparities persist in many industries.
• Unequal Bonus Structures – Some employers may provide higher bonuses or stock options to certain employees based on discriminatory factors rather than job performance.
• Discriminatory Salary Negotiations – If an employer offers lower starting salaries to certain groups based on gender, race, or age, it constitutes wage discrimination.
• Retaliation for Wage Complaints – Employees who file complaints about wage disparities may face retaliation, such as demotions, reduced hours, or termination, which is illegal under employment law.

How to Address Wage Discrimination

Employees who suspect wage discrimination can take the following steps:

1. Review Company Policies – Many employers have internal complaint mechanisms that allow employees to address wage disparities before taking legal action.
2. Gather Evidence – Employees should document discrepancies in pay, including pay stubs, job descriptions, and communication with employers.
3. File a Complaint with the EEOC – The U.S. Equal Employment Opportunity Commission (EEOC) investigates claims of wage discrimination and can take enforcement action against employers violating federal law.
4. Seek Legal Representation – Employment attorneys specializing in wage discrimination can help employees navigate legal claims and pursue compensation for lost wages.

How to Prove Pay Discrimination

Wage discrimination means paying someone less based on a protected characteristic. Proving their pay discrimination requires strong evidence demonstrating that their last discriminatory paycheck is not based on legitimate business reasons, but rather on discriminatory practices. Employees who suspect unfair compensation should understand their legal rights and the necessary steps to build a strong case.

Steps to Prove Pay Discrimination

1. Compare Job Duties and Responsibilities
   To establish a claim, an employee must show that they perform substantially equal work as a higher-paid colleague. Job titles alone are insufficient—courts will analyze factors such as skill level, experience, job duties, and working conditions.
2. Gather Pay Disparity Evidence
   Employees should collect documentation proving a wage gap exists. This includes:
   • Pay stubs or salary records
   • Offer letters
   • Employment contracts
   • Bonus and commission statements
   • Employer compensation policies
3. Identify a Protected Characteristic
   Pay discrimination claims must be linked to a legally protected characteristic under employment discrimination laws, such as gender, race, or age.
4. Look for Patterns of Discrimination
   Evidence of systemic pay discrimination can strengthen a case. If multiple employees in a protected group receive lower pay than colleagues with similar qualifications, this pattern supports a wage discrimination claim.
5. Request Salary Information
   Some states have pay transparency laws requiring employers to disclose salary ranges. Employees can use this information to uncover wage disparities.
6. Document Employer Justifications
   Employers may attempt to justify pay differences based on experience, performance, seniority, or location. Employees should analyze whether these explanations hold up or if they are pretext for discrimination.
7. File a Complaint with the EEOC
   The U.S. Equal Employment Opportunity Commission (EEOC) enforces pay discrimination laws. Employees can file a complaint within 180 or 300 days, depending on state laws.
8. Consult an Employment Lawyer
   An employment discrimination attorney can assess the strength of a case, gather additional evidence, and represent employees in legal proceedings.

Same Job Different Pay Is It Illegal – FAQ

same job different pay: is it illegal? Paying workers different salaries for the same job based on their protected characteristics (gender, race, or age) is illegal, but paying them differently based on experience, seniority, or merit systems is not illegal.

can you sue for being underpaid? A worker may be able to sue for being underpaid if their employer violates labor laws, discriminates against them, or violates the terms of their employment agreement (like failing to pay minimum wage, overtime, or making unauthorized deductions from a paycheck).

how to address pay disparity? Collect evidence that may substantiate that your lower wages are reflective of a protected characteristic. Then, reach out to the discrimination lawyers at Lawyers for Justice, PC for a free consultation so they can help.

can i sue my employer for underpaying me? You usually can sue your employer for underpaying you, especially if they violate wage and hour laws, do not pay minimum wage or overtime, or make unauthorized deductions from your paycheck.

how to deal with unfair pay at work? Collect evidence, consider escalating the issue with HR or a supervisor, and get a free legal consultation to understand your rights – and if you can/should file a an employment lawsuit.

how does discrimination affect wages? Those being discriminated may receive less compensation when in actuality they are entitled to more. They could be missing out on wages.

how to prove you are underpaid? You can research industry standards and your own company’s pay structure, gather evidence of your compensation package, and compare your salary to similar roles and experience levels