Society For Human Resource Management (SHRM) Certified Professional Practice Exam

According to the Equal Pay Act, what must an employer do if a female worker earns less than a male worker in the same job?

1. Recruit at a higher pay rate

2. Defend against possible discrimination

3. Pay a differential for the female

4. Use a banding system for male and female pay

The correct answer is: Pay a differential for the female

The Equal Pay Act mandates that employers provide equal pay for equal work, regardless of gender. If a female worker is found to be earning less than a male counterpart in the same job for which they are performing similar work, the employer is required to rectify this pay disparity. Therefore, the correct course of action is to adjust the female worker's compensation to eliminate the pay gap, ensuring that she receives the same pay as her male counterpart. This requirement stems from the law's intention to promote fairness and prevent gender-based wage discrimination. By paying a differential to the female worker, the employer is complying with the Equal Pay Act's stipulations, which seek to prevent discrimination based on sex and ensure equitable compensation for similar roles. Other approaches mentioned, such as recruiting at a higher pay rate or using a banding system for male and female pay, do not directly address the existing pay inequality and could potentially perpetuate the issues the Equal Pay Act aims to eliminate. Similarly, merely defending against possible discrimination does not address the obligation to equalize wages when a pay disparity has been uncovered.