Gender-based wage discrimination can affect an employee’s income, advancement opportunities, benefits, and long-term earning potential. Employees in Mullica Township, NJ are protected against unlawful pay discrimination under New Jersey and federal employment laws, including the Equal Pay Act of 1963, Title VII of the Civil Rights Act of 1964, and New Jersey’s Diane B. Allen Equal Pay Act.
Unequal pay does not always involve employees with identical job titles. The law generally focuses on the work employees actually perform, including their responsibilities, skills, effort, experience, and working conditions. When an employer pays workers differently because of gender or another legally protected characteristic, the affected employee may have grounds to pursue compensation and other legal remedies.
Understanding the Gender Pay Gap
Historical wage data shows that disparities between male and female workers have persisted even as the overall pay gap has narrowed.
Pew Research Center data from 2015 found that women earned approximately 83 cents for every dollar earned by men working similar hours. That was an improvement from approximately 67 cents in 1980, but it still represented a substantial earnings difference. U.S. Census Bureau data cited during the same period showed that full-time, year-round female workers earned approximately 80% of what male workers earned.
The gap was somewhat smaller among younger workers. Women between ages 25 and 34 earned approximately 90% of what men in that age range earned. Even a smaller percentage difference, however, can result in significant lost earnings over the course of a career.
Pay disparities can also exist in occupations where women make up most of the workforce. Historical research involving childcare positions, for example, found that women earned less than men even when performing the same type of work.
These statistics provide broader context, but an individual wage discrimination claim does not depend on national averages. The central issue is whether an employer unlawfully paid a particular employee less because of gender or another protected characteristic.
Pay Discrimination Can Extend Beyond Base Salary
Unequal compensation is not limited to hourly wages or annual salary. Compensation decisions can also affect:
- Bonuses
- Commissions
- Raises
- Incentive compensation
- Retirement contributions
- Benefits
- Stock or equity compensation
- Overtime opportunities
- Higher-paying assignments
- Promotion opportunities
An employer may also create long-term wage disparities by delaying promotions or repeatedly selecting employees of one gender for higher-paying positions.
For example, an employee who is consistently required to demonstrate more experience or meet higher performance standards before receiving the same promotion as coworkers may experience substantial financial harm even if their starting salary was comparable.
Caregiving Responsibilities and Compensation Decisions
Family and caregiving responsibilities can also affect career advancement. Historical Pew Research Center findings showed that many women reduce their working hours or take extended periods away from work to care for children or aging family members.
Employers may establish legitimate attendance and performance requirements. They cannot, however, make compensation or advancement decisions based on unlawful gender stereotypes.
Assumptions that women will eventually leave the workforce, become less committed after having children, or should receive fewer demanding assignments because of family responsibilities can contribute to discriminatory employment decisions.
When compensation, promotion, or assignment decisions are based on gender rather than legitimate business considerations, legal action may be available.
Legal Help for Pay Discrimination in Mullica Township
Employees working in Mullica Township who believe they are being paid less because of gender may have rights under both federal and New Jersey law.
NJ Employment Lawyers, LLC represents employees throughout New Jersey in wage discrimination and equal pay matters. These claims often require a detailed review of job duties, compensation records, promotion histories, performance evaluations, and the employer’s stated reasons for differences in pay.
Potential remedies may include back pay, adjustments to compensation, damages, attorney’s fees, and other relief available under applicable law.
Federal Protection Under the Equal Pay Act
The Equal Pay Act of 1963 prohibits employers from paying employees differently because of sex when they perform substantially equal work.
The analysis focuses on the actual job rather than the title assigned to it. Courts may examine factors such as:
- Skill required to perform the work
- Effort involved
- Level of responsibility
- Working conditions
- Actual duties performed
Two employees therefore do not necessarily need to have identical job titles to be compared under the Equal Pay Act.
For example, an employer cannot necessarily avoid an equal pay claim by giving employees different titles when their day-to-day responsibilities are substantially equal.
Filing an Equal Pay Act Claim
One significant feature of the federal Equal Pay Act is that employees may generally pursue an EPA lawsuit directly in state or federal court without first filing a discrimination charge with the Equal Employment Opportunity Commission.
Other federal discrimination claims may involve different administrative requirements, so determining which laws apply is an important part of evaluating a wage discrimination matter.
Employees should also be aware that filing deadlines apply. Waiting too long can limit or eliminate available claims, making early review of a potential wage disparity important.
Employers Cannot Correct Unequal Pay by Lowering Other Employees’ Wages
An employer cannot resolve an unlawful wage disparity simply by reducing the compensation of the higher-paid employee.
When a prohibited pay difference exists, the Equal Pay Act is designed to protect the employee receiving lower compensation rather than allowing an employer to reduce another worker’s wages to create equality.
When Pay Differences May Be Lawful
Not every difference in compensation constitutes discrimination.
Employers may be able to justify different pay when the difference is based on legitimate, gender-neutral factors. Examples may include:
- A bona fide seniority system
- A legitimate merit system
- Differences in the quantity or quality of production
- Relevant education
- Training
- Experience
- Other lawful business-related factors
The existence of a pay difference therefore does not automatically establish discrimination.
The important question is why the difference exists.
An employer that claims one employee earns more because of experience, for example, may need to show that experience actually relates to the position and explains the compensation difference rather than serving as a justification created after the disparity is challenged.
How Equal Pay Claims Are Evaluated
An employee pursuing an Equal Pay Act claim generally must establish that an employee of the opposite sex received higher compensation for substantially equal work.
That comparison requires more than looking at job titles.
Important questions may include:
- What duties does each employee actually perform?
- What skills are required?
- How much responsibility does each employee have?
- Do the employees supervise similar numbers of workers?
- Do they manage comparable projects or accounts?
- Are performance expectations similar?
- Are the working conditions comparable?
- Does the employer apply its compensation criteria consistently?
Compensation records, job descriptions, organizational charts, performance reviews, emails, promotion records, and internal pay policies may all become important when analyzing a potential claim.
Historical Development of Equal Pay Protections
Unequal compensation has historically been reinforced by assumptions that women were secondary wage earners, would eventually leave the workforce to raise children, or were less available for demanding positions.
Those assumptions contributed to employment practices that limited both compensation and advancement.
Federal protections expanded over time. The Equal Pay Act was enacted in 1963, and later legislative changes expanded its coverage. Enforcement authority was eventually transferred to the Equal Employment Opportunity Commission.
Although employment practices have changed substantially, federal and New Jersey laws remain necessary because unlawful compensation disparities can still occur through salary decisions, bonuses, promotion practices, job classifications, and other workplace policies.
New Jersey’s Diane B. Allen Equal Pay Act
Employees in Mullica Township also receive substantial protection under New Jersey law.
The Diane B. Allen Equal Pay Act took effect July 1, 2018 and strengthened the New Jersey Law Against Discrimination. Its protections extend beyond gender-based wage discrimination to employees who are members of other protected classes.
Protected characteristics may include gender, race, age, national origin, sexual orientation, disability, pregnancy, marital status, and military status.
The law generally prohibits employers from paying employees in a protected class less than employees outside that class when they perform substantially similar work.
Substantially Similar Work Matters More Than Job Titles
New Jersey’s equal pay protections emphasize the substance of an employee’s position.
An employer cannot necessarily justify a compensation disparity by assigning two workers different titles or placing them in separate departments.
Instead, the analysis may examine whether their positions require substantially similar:
- Skill
- Effort
- Responsibility
This approach can be especially important when companies use different titles for employees whose actual duties overlap significantly.
When New Jersey Employers May Justify a Pay Difference
Employers may be permitted to maintain compensation differences when they can demonstrate that the difference results from legitimate factors rather than discrimination.
Examples may include:
- Seniority
- Merit
- Training
- Education
- Experience
- Quantity or quality of production
- Other bona fide job-related factors
Those factors must be applied consistently and cannot simply serve as substitutes for gender or another protected characteristic.
A legitimate factor should also explain the compensation difference. If an employer cites several factors but none actually account for why one employee receives substantially more compensation, the explanation may warrant closer examination.
Six-Year Back Pay Period
One of the significant features of the Diane B. Allen Equal Pay Act is the potential recovery of up to six years of back pay in qualifying wage discrimination cases.
This extended period can substantially increase the financial value of a claim when an employee has been underpaid for several years.
Employees should still act promptly. Different legal claims have different filing requirements, and delaying an investigation can also make evidence more difficult to preserve.
Each Discriminatory Paycheck Can Matter
New Jersey’s equal pay law treats discriminatory compensation as an ongoing issue when unequal payments continue.
Each paycheck reflecting an unlawful compensation disparity may constitute another violation. This provision is particularly important for employees who discover a pay discrepancy only after it has existed for a significant period.
Potential Treble Damages
Employees who establish violations of New Jersey’s equal pay protections may be entitled to significant financial remedies.
Under the Diane B. Allen Equal Pay Act, damages can potentially include three times the amount of certain economic losses.
Depending on the circumstances and the claims involved, additional remedies may also be available.
Protection Against Retaliation
Employees should not be punished for raising lawful concerns about discriminatory compensation.
Retaliation can include actions such as:
- Termination
- Demotion
- Reduced hours
- Loss of responsibilities
- Negative employment reviews
- Denial of promotions
- Pay reductions
- Unfavorable transfers
New Jersey law also provides protections relating to certain discussions or inquiries about compensation. An employer cannot lawfully use retaliation to prevent employees from exercising rights protected by applicable employment laws.
Evidence That May Support a Wage Discrimination Claim
Pay discrimination is not always obvious. Employees may discover disparities through salary discussions, promotion decisions, compensation records, or changes in workplace responsibilities.
Evidence that may become relevant includes:
- Pay statements
- Employment agreements
- Offer letters
- Bonus records
- Job descriptions
- Performance evaluations
- Promotion records
- Internal compensation policies
- Emails discussing compensation
- Records showing job duties and responsibilities
- Information concerning comparable employees
Employees should preserve lawfully accessible records that may help establish what work they performed and how their compensation compared with similarly situated coworkers.
Legal Support for Wage Discrimination in Mullica Township
Workers in Mullica Township who believe they receive lower compensation than employees performing substantially similar work may have claims under federal law, New Jersey law, or both.
These cases can involve more than comparing two salaries. A proper evaluation may require reviewing job duties, experience, performance standards, promotion practices, bonus systems, employment records, and the employer’s explanation for the compensation difference.
NJ Employment Lawyers, LLC represents employees throughout New Jersey in equal pay and wage discrimination matters. The firm assists workers in evaluating potential violations, gathering relevant evidence, challenging discriminatory compensation practices, and pursuing available remedies.
If you believe your employer has paid you less, denied you raises, or limited your advancement because of gender or another protected characteristic, legal counsel can help determine whether the compensation difference is lawful and what options may be available.
