The Equal Pay Act: More Than 60 Years of Progress and Purpose

The beginnings of equal pay in the USA

As an amendment to the Fair Labor Standards Act, the Equal Pay Act (EPA) made it illegal for employers to pay employees differently based on sex when they perform jobs that require substantially equal skill, effort, and responsibility under similar working conditions.

While the EPA was a legal milestone, its passage also signaled something bigger: a societal shift in how we think about fairness, opportunity, and equity in the workplace. The law laid the foundation for future protections against discrimination and helped bring pay equity into the national conversation.

Today, even as the workforce and economy have evolved, the core idea behind the Equal Pay Act continues to shape policies, practices, and expectations around compensation and workplace fairness.

The Equal Pay Act: a turning point for workplace equity

When the Equal Pay Act became law, it addressed a specific form of discrimination—unequal pay based on sex—but it also marked a broader turning point. For the first time, U.S. federal law recognized that fairness in compensation is central to equality in the workplace.

The Act emerged during a period of growing momentum for civil rights and social change. At the time, women often earned significantly less than men for doing the same jobs, with little legal recourse. The EPA aimed to correct that by introducing a clear standard: men and women doing substantially equal work must receive equal pay.

Over time, the law became a reference point in debates around gender equality, influencing other landmark legislation such as Title VII of the Civil Rights Act and, later, the Lilly Ledbetter Fair Pay Act. It also contributed to the emergence of “pay equity” as a recognized topic in public policy, HR practices, and corporate governance.

In short, the Equal Pay Act didn’t just change the rules—it helped change the conversation.

Understanding what the Equal Pay Act requires from employers

At its core, the Equal Pay Act requires employers to provide equal pay to men and women who perform substantially equal work within the same workplace. This applies across all forms of compensation, including:

So what qualifies as “substantially equal” work? The law focuses on job content rather than job titles. If two roles require:

• Similar levels of skill, including experience and education.
• Comparable effort and responsibility.
• The same or similar working conditions.

...then employees in those roles must be paid equally, regardless of sex.

That said, the Equal Pay Act allows for some exceptions. Employers may legally pay different wages if the difference is based on:

• A seniority system.
• A merit-based system.
• A system based on quantity or quality of output.
• Any other factor not related to sex—such as experience, education, or geographic location.

Once a wage discrepancy is identified, the burden is on the employer to prove that the difference is justified by one of these exceptions. That’s why documentation, consistency, and clarity in pay practices are essential.

The EPA applies to most employers in the U.S., regardless of size or industry, and covers both hourly and salaried employees. Importantly, employees do not need to file a complaint with a government agency before pursuing a claim in court—making proactive compliance all the more important.

The business case for embracing equal pay

While the Equal Pay Act established a legal standard, the conversation around equal pay has evolved far beyond compliance. Today, organizations are increasingly recognizing that fair pay is more than just a legal requirement—it’s a strategic advantage.

Here’s why equal pay makes business sense:

• Talent attraction and retention. Employees are more likely to join and stay with companies that are seen as fair and inclusive. Equal pay contributes to a positive employer brand and stronger workforce stability.
• Increased trust and engagement. When employees believe they’re being compensated fairly, it builds trust—and trust drives engagement, loyalty, and productivity.
• Improved performance and collaboration. Perceived fairness supports team cohesion and reduces friction, helping people focus on results rather than compensation concerns.
• Risk reduction. Organizations that proactively monitor and address pay disparities reduce the likelihood of legal disputes or reputational damage.
• Alignment with values. As expectations rise for environmental, social, and governance (ESG) accountability, equal pay is becoming a key metric for demonstrating a commitment to fairness and equity.

For HR professionals and business leaders, embracing equal pay is no longer just about avoiding penalties. It’s about creating the kind of workplace where people can thrive—and where the organization, in turn, becomes stronger, more innovative, and more resilient.

Steps for complying with the Equal Pay Act

Complying with the Equal Pay Act requires more than simply reviewing job titles or matching pay scales. It involves taking a thoughtful, structured approach to compensation practices that aligns with the law’s requirements—and the organization’s values. This in turn requires having the tools that enable pay gap analysis and remediation.

Here are key steps that can help employers stay compliant:

For many organizations, compliance also serves as a starting point for broader pay equity efforts. By building transparency and structure into compensation, companies can go beyond checking boxes and begin building a culture grounded in fairness.

60+ years later, progress—and purpose—remain

Since its passage in 1963, the Equal Pay Act has helped shape a workplace landscape that increasingly values fairness, transparency, and accountability. It laid the legal and cultural groundwork for what we now call pay equity—and it sparked decades of progress in how organizations think about compensation and inclusion.

And there has been real progress: in 1963, women in the U.S. earned just 59 cents for every dollar earned by men. Today, that figure is closer to 85 cents, according to Pew Research Center. While that improvement is meaningful, the gap remains—especially for women of color, and in industries where bias or structural inequities persist.

Despite gains, the work is far from finished. Legal compliance is critical, but the broader goal is cultural: to build workplaces where pay reflects performance, not bias.

Today, the Equal Pay Act remains a reminder of both how far we’ve come and how far we still have to go. For employers, it’s a call to action—not just to meet the letter of the law, but to lead with fairness, and to ensure that every employee is recognized and rewarded for their true contribution.

By continuing to prioritize pay equity, organizations can do more than comply. They can contribute to a more inclusive workforce and a more equitable future.