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The Equal Pay Act of 1963

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Establishment

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The Equal Pay Act applies to jobs within an establishment, a term which typically refers to a distinct physical place of business rather than an entire business or enterprise.

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Criteria for Determining Equal Skill

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In evaluating skill, factors such as experience, ability, education, and training are considered under the Equal Pay Act.

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Exceptions to the Equal Pay Rule

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There are specific exceptions where unequal pay is permitted under the Equal Pay Act: seniority systems, merit systems, systems measuring earnings by quantity or quality of production, and differential based on any factor other than sex.

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Working Conditions

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The Equal Pay Act considers working conditions in terms of two factors: physical surroundings like temperature and hazards, and the regularity of the work.

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Prohibition of Sex-Based Wage Discrimination

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The Equal Pay Act mandates that employers must give equal pay for equal work regardless of the employee's sex, helping to close the gender wage gap.

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Criteria for Determining Equal Responsibility

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Responsibility under the Equal Pay Act is gauged by the degree of accountability required in performing a job, where similar levels mandate equal pay.

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Scope of Work 'Equal Work'

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Work is considered 'equal' under the Equal Pay Act when jobs require substantially equal skill, effort, and responsibility, and are performed under similar working conditions.

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Pay Elements Covered

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Under the Equal Pay Act, pay includes salary, overtime pay, bonuses, stock options, profit sharing and bonus plans, life insurance, vacation and holiday pay, cleaning or gasoline allowances, hotel accommodations, reimbursement for travel expenses, and benefits.

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Criteria for Determining Equal Effort

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Equal effort refers to the amount of physical or mental exertion needed to perform a job, as defined by the Equal Pay Act.

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Legal Remedies for Violations

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When an employer violates the Equal Pay Act, the remedies may include back pay, compensatory and punitive damages, and in instances where the violation is willful, additional penalties such as fines or imprisonment may apply.

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