{"id":4792,"date":"2024-06-14T16:24:01","date_gmt":"2024-06-14T16:24:01","guid":{"rendered":"https:\/\/www.brightmine.com\/us\/?post_type=resources&p=4792"},"modified":"2026-01-30T09:00:33","modified_gmt":"2026-01-30T14:00:33","slug":"pay-equity-vs-pay-equality-knowing-the-difference","status":"publish","type":"resources","link":"https:\/\/www.brightmine.com\/us\/resources\/total-rewards\/employee-compensation\/pay-equity\/pay-equity-vs-pay-equality-knowing-the-difference\/","title":{"rendered":"Pay equity vs. pay equality: Knowing the difference"},"content":{"rendered":"\n
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by Natasha K. A. Wiebusch<\/strong>, JD<\/strong>, Brightmine Marketing Content Manager<\/p>\n\n\n\n

Companies that excel in pay equity see higher profits, improved customer satisfaction and higher talent success rates, according to the Josh Bersin Company\u2019s recent Definitive Guide to Pay Equity research. Unfortunately, despite the clear benefits, progress has been slow.<\/p>\n\n\n\n

Now, more than 60 years after the passage of the Equal Pay Act of 1963, the pay gap between men and women remains ever present\u2026and stubborn. As of March 2024, women make 84% of what men make in a year, according to the US Department of Labor.<\/p>\n\n\n\n

But in the years since the pandemic, employees have seen a welcome change. In the absence of federal action (Congress failed to pass the Fair Paycheck Act for the fourth time in 2023), several states have passed pay transparency laws to supplement existing pay equity laws. And in the race to attract and retain talent, employers have renewed their commitments to eradicate pay inequity.<\/p>\n\n\n\n

Employers across the US have implemented pay equity strategies to ensure not only gender pay equity, but also fair pay across other demographics. A key piece of these strategies is understanding the difference between pay equity and pay equality. In this article, we explain what the difference is and why it’s important.<\/p>\n\n\n\n

What is pay equality?<\/h2>\n\n\n\n

Pay equality is the concept of providing equal pay for equal work. It means employees should be paid the same amount for doing comparable work regardless of their sex, gender, race or other characteristics.<\/p>\n\n\n\n

Pay equality is at the center of pay discrimination. That is, if an organization is paying a man and a woman differently for doing substantially the same job, they could be violating the Equal Pay Act.<\/p>\n\n\n\n

Organizations can<\/em> pay employees more based on their qualifications (e.g., experience, education or skills). However, all else being equal, pay discrepancies based on sex result in illegal unequal pay, leading to a significant risk for organizations.<\/p>\n\n\n\n

What is pay equity?<\/h2>\n\n\n\n

Pay equity is the concept of ensuring equitable pay among all employees regardless of sex, gender, race or other characteristics. Pay equity practices seek to reduce disparities among employees of diverse backgrounds.<\/p>\n\n\n\n

Unlike pay equality, pay equity is not solely focused on comparing pay among employees doing the same job. It also accounts for societal barriers, biases and stereotypes that contribute to disparities in pay.<\/p>\n\n\n\n

For example, an organization may experience pay inequity if it has an over-representation of women in lower paying job roles. Though there is no instance of pay discrimination, the unequal representation of women causes a gender pay disparity.<\/p>\n\n\n\n

Why knowing the difference is important<\/h2>\n\n\n\n

Understanding pay equity vs pay equality is important because it helps you shape a holistic pay equity strategy. If you understand the nuances of these terms, you can build a strategy that ensures equal pay and<\/em> equitable opportunities and growth for all employees.<\/p>\n\n\n\n

Creating a pay equity strategy also requires HR and other leaders to communicate efforts to the wider organization. Here, it’s extremely important that communications are clear about what key terms, such pay equity, mean to the organization.<\/p>\n\n\n\n

For example, if you announce a pay equity initiative without more information, employees may believe this is limited to eliminating pay discrimination. With proper onboarding and explanation, employees can come to fully understand that pay equity involves more than pay equality.<\/p>\n\n\n\n

Achieving pay equity<\/h2>\n\n\n\n

Achieving pay equity in your organization is a long-term strategy. It requires finding the right information; ensuring HR, business leaders and managers are on the same page; and creating sustainable solutions. The following recommendations can help you get started:<\/p>\n\n\n\n

Conduct a pay equity analysis<\/h3>\n\n\n\n

Analyzing pay equity in your organization will require a pay equity audit<\/a>. Audits involve collecting pay data alongside employee demographic information to identify patterns, trends and disparities.<\/p>\n\n\n\n

Specifically, an in-depth audit enables an analysis that identifies wage gaps caused by pay inequality and other disparities. For example, an audit may identify opportunity gaps \u2014 which contribute to wage gaps \u2014 in specific departments or leadership roles.<\/p>\n\n\n\n

With the right pay equity solution, conducting an audit for pay equity can provide your organization with the information you need to remediate existing and future disparities. And the visibility over your pay data will help you create a fair compensation strategy<\/a> moving forward.<\/p>\n\n\n\n

Know the laws that govern pay equity<\/h3>\n\n\n\n

Employers must also comply with a network of pay equity legislation that prohibits pay discrimination or requires employers to disclose pay information:<\/p>\n\n\n\n

The Equal Pay Act of 1963 (EPA)<\/h4>\n\n\n\n

The Equal Pay Act<\/a> prohibits employers from discriminating on the basis of sex in their pay practices. This includes discrimination based on sexual orientation and gender identity. That is, employers in the United States must pay employees equally for equal work.<\/p>\n\n\n\n

Title VII of the Civil Rights Act of 1964<\/h4>\n\n\n\n

Title VII prohibits workplace discrimination on the basis of race, color, religion, sex and national origin (referred to together as \u201cprotected classes\u201d). Specifically, it prohibits employers from committing an \u201cadverse employment action\u201d against an employee based on a protected class. An adverse employment action includes paying an employee less than other employees.<\/p>\n\n\n\n

Americans with Disabilities Act (ADA)<\/h4>\n\n\n\n

The ADA prohibits employers from discriminating against employees based on disability. Similar to Title VII, this includes paying an employee less based on their disability. Here, it\u2019s important to understand what the definition of a disability is under the ADA. An employee has a disability under the ADA if they:<\/p>\n\n\n\n