by Paula Määttä

XII. United States

B. Scope of the concepts on equal pay

1. The definition of "pay"

The Equal Pay Act of 1963 applies to wages and wage rate. "Wages" includes all payments made to an employee as remuneration for employment. It covers all forms of compensation irrespective of the time of payment, and includes salary, profit sharing, expense account, monthly minimum, bonus, uniform cleaning allowance, hotel accommodation, use of company car, and gasoline allowance. Remuneration also covers vacation and holiday pay, and premium payments for work on Saturdays, Sundays, holidays, regular days of rest or other days or hours in excess or outside of the employees regular days or hours of work.

Fringe benefits are deemed to be remuneration for employment. "Fringe benefits" include medical, hospital, accident, life insurance and retirement benefits and also such terms as profit sharing, bonus plans and leave.

"Wage rate" means the standard or measure by which an employees wage is determined. It covers all rates of wages whether calculated on a time, commission, piece, job incentive, profit sharing, bonus, or other basis. It includes the rate at which overtime compensation or other special remuneration is paid as well as the rate at which straight time compensation for ordinary work is paid. The term contains also the rate at which a draw, advance, or guarantee is paid against a commission settlement.

2. The definition of "equal work"

The scope of the Equal Pay Act is narrow. The Equal Pay Act prohibits discrimination by employers on the basis of sex in the wages paid for "equal work on jobs the performance of which requires equal skill, effort and responsibility and which are performed under similar working conditions". The Act is construed as requiring equal pay for equal work and not equal pay for work of equal value. The concept of equal work in this context means that the compared jobs are the same or substantially similar. This Act does not deal with dissimilar jobs.

Application of the equal pay standard is not dependent on job classifications or titles but on actual job requirements and performance. Skill includes consideration of such factors as experience, training, education and ability. Effort is concerned with the measurement of the physical or mental exertion needed for the performance of a job. Responsibility is concerned with the degree of accountabilityrequired in the performance of the job, with emphasis on the importance of the job obligation. Working conditions encompass such features as toxic chemicals and fumes, and hazards.

The scope of the equal pay guarantee under Title VII of the Civil Rights Act is unclear, but this Act is interpreted as requiring equal pay for work of comparable value. The compared jobs may be dissimilar. The scope of this Act is deemed to be wider than the scope of the Equal Pay Act.

3. Scope of the equal pay provisions

The Equal Pay Act and Title VII concern most federal, state and local government employees, and employees in the private sector. Title VII applies to employers who have 15 or more employees. In addition to full-time workers the legislation also protect part-time, temporary and casual workers. Home work is treated like any other work.

Because the principle of equal pay concerns all kinds of wages and benefits, the employer has to make benefits available for the spouses or families of employees of both sexes. This also applies to pension or retirement plans, which must establish the same optional or compulsory retirement ages for female and male employees.

A number of states have enacted legislation in the comparable worth area. The state legislation applies to the public sector employers in a particular state. It does not apply to the private sector, nor to other state governments. (Bellace 1993, p. 172.)