Recent events have turned a spotlight on equality across the nation. As a result, pay equity has been getting increased attention. We have seen strict state-specific pay equity laws put into place over the last few years. While pay equity has been federal law for quite some time, state laws are more enforceable. All of these states also mandate wage transparency by permitting individuals to discuss their wages freely. Below are the states who have enacted stricter pay equity laws as of December 2020, with many others expected to follow soon.

Protected ClassesCoverageType of Work to CompareCircumstances in Which Pay
May Differ
California
Sex, race, and ethnicityAll men, women, and minors employed in any occupation, trade, or industry, whether compensation is measured by time, piece, or otherwiseSubstantially similar work, performed under similar working conditions, when viewed as a composite of skill, effort, and responsibility
  • A seniority system
  • A merit system
  • A system that measures earnings by quantity or quality of production
  • A bona fide factor other than sex, race, or ethnicity (i.e., education, training, or experience)
Colorado
Sex or sex in combination with another protected statusAll employers and employeesSubstantially similar work, regardless of job title, based on a composite of skill, effort, and responsibilityEmployer demonstrates each of the following:

  • That the wage differential is based on a seniority system, a merit system, a system measuring earnings by quantity or quality of production, the geographic location where the work is performed, education, training or experience, or travel
  • That each factor relied on is applied reasonably
  • That each factor relied upon accounts for the entire wage rate differentia
  • That the prior wage rate history was not relied on to justify a disparity in current wage rates
Connecticut
SexAll employers and employeesEqual work in jobs that requires equal skill, effort, and responsibility, and is performed under similar working conditions
  • A seniority system
  • A merit system
  • A system measuring earnings by quantity or quality of production
  • A differential system based upon a bona fide factor other than sex (i.e., education, training, or experience)
Delaware
SexAll employersEqual work in the same establishment that requires equal skill, effort, and responsibility, and is performed under similar working conditions
  • A seniority system
  • A merit system
  • A system measuring earnings by quantity or quality of production
  • Any other factor other than sex
Hawaii
SexAll employers and their agentsEqual work in jobs in the same establishment that require equal skill, effort, and responsibility, and are performed under similar working conditions
  • A seniority system
  • A merit system
  • A system that measures earnings by quantity or quality of production
  • A bona fide occupational qualification
  • A differential based on any other permissible factor other than sex.
Illinois
Sex and African-American employeesAll employers and employeesThe same or substantially similar work that requires substantially similar skill, effort, and responsibility, and is performed under similar working conditions
  • A seniority system
  • A merit system
  • A system that measures earnings by quantity or quality of production
  • A differential based on any other factor other than sex/race or a factor that would constitute unlawful discrimination under the Illinois Human Rights Act

Any other factor exception applies only when the factor:

  • Is not based on or derived from a differential in compensation based on sex or another protected characteristic
  • Is job-related with respect to the position and consistent with a business necessity
  • Accounts for the differential
Maine
SexAll employersComparable work in jobs with comparable requirements relating to skill, effort, and responsibility
  • Seniority systems
  • Merit increase systems
  • The difference in the shift or time of the day worked
Maryland
Sex and gender identityAll employersWork of a comparable character performed in the same establishment or work performed in the same operation or business or of the same type
  • A merit system
  • Different required abilities or skills
  • Regular performance of different duties or services
  • A difference in shifts or time of day worked
  • A system that measures earnings by quantity or quality of production
  • Geographic locations outside of the employee’s county
  • A bona fide factor other than sex, such as education, training, or experience
Massachusetts
SexAll employersComparable work that is substantially similar in that it requires substantially similar skill, effort, and responsibility, and is performed under similar working conditions
  • A seniority system (not affected by a pregnancy, parental, or family leave)
  • A merit system
  • A system measuring earnings by quantity or quality of production, sales, or revenue
  • Geographic location
  • Education, training, or experience (reasonably related to the particular job in question)
  • Travel that is a regular and necessary part of the job
New Jersey
  • Race
  • Creed
  • Color
  • National origin, nationality, or ancestry
  • Age
  • Marital, civil union, or domestic partnership status
  • Affectional or sexual orientation
  • Genetic information
  • Pregnancy
  • Sex
  • Gender identity or expression
  • Disability
  • Atypical hereditary, cellular, or blood trait
All employersSubstantially similar work when viewed as a composite of skill, effort, and responsibility
  • A seniority system
  • A merit system
  • A differential based on one or more legitimate, bona fide factors other than the characteristics of members of the protected class, such as training, education, or experience, or the quantity or quality of production
New York
  • Sex
  • Age
  • Race
  • Creed
  • Color
  • National origin
  • Sexual orientation
  • Gender identity or expression
  • Military status
  • Disability
  • Predisposing genetic characteristics
  • Familial status
  • Marital status
  • Domestic violence victim status
  • Interns
All EmployersEqual work on a job the performance of which requires equal skill, effort, and responsibility, and is performed under similar working conditions

Or substantially similar work, when viewed as a composite of skill effort, and responsibility, and performed under similar working conditions

  • A seniority system
  • A merit system
  • A system that measures earnings by quantity or quality of production
  • A bona fide factor other than protected class status, such as education, training, or experience
Oregon
  • Race
  • Religion
  • Color
  • Sex
  • Sexual orientation
  • Veteran status
  • Marital status
  • Age
  • National origin
  • Disability
All employersWork of comparable character that requires comparable skills
  • Seniority
  • A merit system
  • Quantity or quality of production (including piece-rate work)
  • Workplace locations
  • Travel, if necessary and regular
  • Education
  • Training
  • Experience
  • Any combination of the above factors if the combination accounts for the entire compensation differential

An employer may pay employees for work of a comparable character at different compensation levels based on one or more of the bona fide factors (e.g., a seniority system, a merit system, workplace locations) that are contained in a collective bargaining agreement.

Washington
Sex and genderAll employersWork for the same employer in jobs that require similar skill, effort, and responsibility, and are performed under similar working conditionsA differential in compensation based on bona fide job-related factors that:

  • Are consistent with business necessity
  • Are not based on or derived from a gender-based differential
  • Account for the entire differential

Bonafide factors may include:

  • Education
  • Training
  • Experience
  • A seniority system
  • A merit system
  • A system that measures earnings by quantity or quality of production
  • A bona fide regional difference in compensation level

Stepping up your DEI efforts? Now is the time to address pay equity