Pay Equity Standards in Pay Data Reporting


Over the past several decades, many laws have been passed that mandate that employers treat their employees fairly, or equitably, through every step of the employment process. These laws generally directly or indirectly state that employers need to have fair recruiting and hiring, fair pay, fair review processes, and fair promotion decisions.

While these standards set a good foundation, historically there has been no real transparency mechanism to hold employers accountable, and no way to track progress on whether they are meeting these standards.

As global pay data reporting continues to expand, pay equity standards are now coming to the forefront and are a critical aspect of the process.

In the realm of pay data reporting, understanding pay equity standards is paramount. These standards, which encompass Equal Pay for Equal Work, Equal Pay for Comparable Work, and Equal Pay for Work of Equal or Comparable Value, form the foundation of reporting requirements globally.

Equal pay for equal work

Employees performing identical work must be paid equitably. Any pay differences must be able to be explained by legitimate business reasons.

Equal pay for comparable work

Employees performing substantially similar work must be paid equitably. Substantively similar typically means similar skills, effort, and responsibility required to perform the work. Any pay differences must be able to be explained by legitimate business reasons.

Equal pay for work of equal or comparable value

Employees who are performing completely different work, but that can be shown to be of equal value based on "objective criteria" must be paid equitably.

Each jurisdiction may align with one of these standards, dictating how organizations must report on pay equity. Trusaic excels in navigating these complexities, ensuring compliance with precision across diverse jurisdictions.

Learn more about Pay Equity Standards today and enhance your pay data reporting compliance efforts.