Pay equity

Pay equity is the pursuit of fair compensation across jobs and groups, including efforts to identify and reduce pay differences that lack a justifiable basis.

Pay gap: A difference in average or median earnings between groups or populations. Pay gaps are the disparities pay-equity analysis seeks to explain and reduce.
Equal pay for equal work: The principle that people doing the same or substantially similar work should receive equal pay. It is a direct, job-based form of the broader pursuit of pay equity.
Pay audit: A structured review of compensation data to identify disparities and assess their causes. A pay audit is a practical way to locate unexplained differences within an employer’s workforce.
Pay equality: The condition of receiving the same pay, without necessarily accounting for differences in job demands or circumstances. Equity allows justified differences; equality can imply identical compensation regardless of relevant factors.
Job evaluation: A systematic method for assessing the relative value of jobs within an organization. Job evaluation helps compare different roles when assessing equal pay for work of equal value.
Equal pay for work of equal value: The principle that different jobs of comparable value should receive equal pay. It extends comparisons beyond identical roles to work with comparable demands.
Salary history ban: A law or policy restricting employers from asking about or relying on applicants’ prior pay. It aims to prevent past pay disparities from carrying into new jobs.
Equal opportunity: The principle that people should have fair access to employment and advancement without discrimination. Opportunity concerns access to jobs, while pay equity concerns the fairness of compensation.
Compensable factor: A job characteristic, such as skill or responsibility, used to determine compensation. These factors can justify differences between jobs when their requirements are assessed consistently.
Wage discrimination: Unlawful or unfair differences in compensation based on a protected characteristic or other improper basis. Pay equity efforts often investigate whether group pay differences reflect discriminatory treatment.

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