Are we liable for male-female pay disparities? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Are we liable for male-female pay disparities?

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in Compensation and Benefits,Human Resources

Q. The company that I own has been in business since 1930. We recently performed an assessment of positions and salaries and discovered that our male executives are paid higher salaries than female counterparts. Are we liable for any unfair business practices?

A. Yes, your business is in violation of the Equal Pay Act of 1963. The act requires that male and female workers receive equal pay for work performed under similar working conditions and requiring equal skill, effort and responsibility. No employers are exempt.

It is also important to note that most federal and state statutes governing wages and hours require employers to maintain records that accurately reflect hours worked. Wages are generally due upon completion of work and must be paid within a reasonable time thereafter, although many states provide for a specific time period. Payment must be made by cash, check or, in some states, by direct deposit to an employee’s bank account and must be accompanied by a statement showing gross wages, deductions and net wages.

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