pay equity

Intermediate 👥 Human Resources

Definition

The practice of ensuring employees receive equal compensation for equal work regardless of gender, race, or other protected characteristics. What should be obvious common sense but somehow requires entire departments, audits, and legal mandates.

Example Usage

Our pay equity audit revealed that women in technical roles were making 12% less than male counterparts, triggering immediate salary adjustments and some very uncomfortable executive meetings.

Origin

Rooted in the Equal Pay Act of 1963, gained renewed focus during 2010s transparency movements

Fun Fact

Iceland became the first country to legally require companies to obtain pay equity certification in 2018, with violators facing daily fines—proving that sometimes you need teeth in the law.

Source: Compensation management and employment law terminology

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