## Equal pay law in North Carolina Pay disparities by sex, race, and other protected characteristics are illegal under multiple federal + state laws. Recent state-level reforms have added pay-transparency, salary-history-ban, and stronger remedies. ## Federal equal-pay laws **1. Equal Pay Act (EPA, 1963).** Prohibits sex-based wage differentials for substantially equal work. No required intent. **2. Title VII of Civil Rights Act (1964).** Prohibits compensation discrimination based on race, color, religion, sex, national origin. **3. Age Discrimination in Employment Act (ADEA).** Compensation discrimination by age 40+. **4. Americans with Disabilities Act (ADA).** Compensation discrimination based on disability. **5. Lilly Ledbetter Fair Pay Act (2009).** Each discriminatory paycheck restarts the statute of limitations. ## EPA basics **To win an EPA claim, plaintiff shows:** - Two employees of opposite sex - Substantially equal work - Same establishment - Different rates of pay **"Substantially equal"** = same skill, effort, responsibility, working conditions. **Defenses (employer must prove):** - Seniority system - Merit system - Quantity/quality of production - Any factor other than sex (narrowed in many states) ## Title VII vs EPA **Title VII broader:** - Covers more protected categories - Larger employers (15+) - More remedies (compensatory + punitive damages) - Requires intent / disparate impact - 180/300-day filing deadline **EPA narrower but stricter:** - Sex only - Smaller employers (any with interstate commerce) - Strict liability (no intent required) - Damages limited to back pay + liquidated damages - 2-3 year statute of limitations Many cases plead both. ## State-level enhancements **Strong-state pay-equity laws:** **California Equal Pay Act:** - "Substantially similar work" (broader than federal) - "Bona fide factor other than sex" must be reasonable + applied reasonably - Salary history ban - Pay scale disclosure (15+ employees, on request) - Damages: actual + liquidated **New York Equal Pay Act:** - Substantially similar work - Geographic comparability provisions - Salary history ban statewide (2020) - Pay-range disclosure (Sept 2023) **Massachusetts Equal Pay Act (2018):** - Comparable work standard - Pay-history ban - Self-evaluation safe harbor **Colorado Equal Pay for Equal Work Act:** - Strong remedies - Salary history ban - Job posting pay disclosure required **Washington Equal Pay and Opportunities Act:** - Strong protections - Wage history restrictions - Disclosure requirements ## Salary history bans Many states / cities prohibit asking about prior pay during hiring: - Goal: break perpetuation of pay disparities - Applies in: CA, CO, CT, HI, IL, MA, NJ, NY, OR, RI, VT, VA, WA, DC, plus many cities - Some allow voluntary disclosure ## Pay-transparency laws Recent trend toward pay-range disclosure: - **CO** (2021) — first state requiring disclosure in job postings - **WA** (2023) — full salary range required - **NY** (2023) — broad disclosure - **CA** (2023) — disclosure required - **HI** (2024) — disclosure required - **MD, RI, DC** — limited disclosure ## Common claims **Direct disparity:** - Female employee paid less than male doing same / similar work - Black employee paid less than white in same role - Older employee paid less than younger in same role **Pattern / practice:** - Systemic disparities across protected class - Statistical evidence of pattern **Pay raise / promotion disparities:** - Slower advancement for protected class - Lower percentage raises **Bonus / commission disparities:** - Discretionary compensation showing patterns **Retaliation for discussing pay:** - Federal NLRA + state laws protect concerted activity - Many state laws specifically protect pay discussion ## Damages **EPA:** - Back pay (typically 2-3 years) - Liquidated damages = double back pay (unless employer shows good faith) - Attorney's fees **Title VII:** - Back pay + front pay - Compensatory damages (capped $50K-$300K) - Punitive damages (capped) - Attorney's fees **State laws:** - Often broader; uncapped damages in some states ## What you should do If you suspect pay disparity in North Carolina: gather information legally — talk to coworkers, review public salary data (Glassdoor, salary.com, government databases), look for promotion timelines. Federal + state pay-discussion protections protect this. Consult an employment attorney before filing — many North Carolina employment attorneys offer free initial consultations and work on contingency. --- *This guide is general information about federal and North Carolina law as of early 2026 and is not legal advice. Pay-equity law has expanded significantly in recent years. Talk to a licensed North Carolina employment attorney about your specific situation.*