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SHRM-CPFrequently TestedEmployment Law Domain
four affirmative defenses, memorize all four

Equal Pay Act and Pay Equity

1963

Year Enacted

Part of FLSA

4

Affirmative Defenses

Seniority merit production factor other than sex

0

Employer Size Minimum

Applies to all employers covered by FLSA

Equal Pay Act Fundamentals

Enacted in 1963 as an amendment to the FLSA, the Equal Pay Act prohibits sex-based wage discrimination for substantially equal work performed under similar working conditions. Unlike Title VII, the EPA has no minimum employer size requirement. Any employer covered by the FLSA is covered by the EPA.

Substantially equal does NOT mean identical. Same skill, effort, responsibility, and working conditions. The comparison focuses on actual job duties, not job titles. Two employees with different titles performing the same core work must receive equal pay.

The Four Affirmative Defenses

these are the ONLY ways an employer can justify unequal pay
1

Seniority System

A formal system that awards higher pay based on length of service. Must be consistently applied.

2

Merit System

A formal system that rewards superior performance with higher pay. Must be based on documented evaluations.

3

Production-Based Pay

Pay tied to quantity or quality of production (piecework, commissions). Higher output = higher pay.

4

Factor Other Than Sex

Education, experience, shift differential, geographic location. The broadest defense but increasingly scrutinized by courts.

Equal Pay vs Comparable Worth

Equal Pay (Federal Law)

Requires equal pay for substantially equal work. Compares jobs that are essentially the same. Well-established law with clear standards.

Comparable Worth (Theory)

Argues that different jobs of comparable value to the organization should be paid equally. A nurse and an electrician might receive the same pay if their jobs have comparable skill, effort, and responsibility. Not required by federal law.

can you name all four defenses from memory?

Practice Equal Pay Act questions with scenarios testing each affirmative defense

Practice EPA Questions

Exam Traps

"Substantially equal" does not mean identical

The Equal Pay Act requires equal pay for substantially equal work, not identical work. Jobs must share the same skill, effort, responsibility, and working conditions. Different job titles are irrelevant. The exam will present two roles with different titles but substantially equal duties and ask whether the pay gap violates the law.

"Factor other than sex" is the broadest defense but narrowed by courts

The fourth affirmative defense (a factor other than sex) allows employers to justify pay differences based on education, experience, or market rates. However, courts have increasingly narrowed this defense. Simply citing "market rate" may not be sufficient if the market rate itself reflects historical discrimination.

Market rate alone may not justify a pay differential

If a female candidate was underpaid at a previous employer and the new employer matches that salary, the pay gap perpetuates prior discrimination. Some courts have ruled that prior salary alone is not a legitimate "factor other than sex." The exam tests whether you understand this evolution.

Four Defenses

Seniority. Merit. Production quantity/quality. Any factor other than sex. If the employer cannot prove one of these four, the pay gap is illegal.

Substantially Equal

Same skill. Same effort. Same responsibility. Same working conditions. Different titles do not matter.

1
The Menu

Imagine a restaurant that charges different prices for the same dish depending on who ordered it. The steak costs $30 for some customers and $20 for others, for no reason related to the food. That is what the Equal Pay Act prohibits in the workplace.

2
The Four Exceptions

The restaurant CAN charge different prices if the steak was aged longer (seniority), if the customer won a cooking contest and earned a discount (merit), if the customer ordered in bulk (production), or if there is a legitimate reason unrelated to who the customer is (other factor).

3
The Test

Is it the same dish? Same ingredients, same preparation, same cooking time, same presentation (skill, effort, responsibility, working conditions). Different names on the menu do not matter. If the dishes are substantially equal, the price must be equal.

4
The Ledbetter Connection

The Lilly Ledbetter Fair Pay Act made it so each new paycheck resets the clock for filing a complaint. You do not have to discover the gap immediately. Every discriminatory paycheck is a new violation.

4 defenses = seniority, merit, production, any factor except sex.
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Reviewed by Sarah L., PrepSolution Content Editor, HR
Sources verified against SHRM 2026 standards
Updated May 2026