Equal Pay Act of 1963
A federal law prohibiting pay discrimination against employees because of
their gender. The Act compels businesses to pay equal wages to employees performing
substantially equal work, regardless of the sex of the individual employees.
Pay differentials may be based on merit, seniority, or any lawful factor other
than sex. The Equal Pay Act applies to all businesses regardless of the number
of employees. Inequalities in pay between men and women for performance of "substantially
equal jobs" are prohibited, unless the differences are due to a factor other
than sex, such as a seniority system or merit system. Claims alleging violation
of the Equal Pay Act are covered by employment practices liability insurance
(EPLI) policies.
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