Pay Inequality and Compensation Discrimination
Main office: Marblehead, MA • Representing employees in Massachusetts and New Hampshire
What Is Pay Inequality?
Pay or compensation discrimination occurs when employees performing similar work do not receive similar pay based on a protected characteristic, such as sex, race, disability, national origin, or age. The gap may appear in base salary, bonus eligibility, commission structure, benefits, equity grants, or any other component of total compensation.
Data throughout the country shows that pay inequality exists across a wide range of industries and occupations, including professional services, healthcare, technology, and financial services, sectors that are heavily represented on the North Shore. A variety of statutes exist at the state and federal level to prevent and remedy pay discrimination.
Applicable laws include:
- Massachusetts Equal Pay Act (MEPA) – one of the strongest equal pay statutes in the country, prohibiting pay differentials between employees performing “comparable work” based on gender
- Massachusetts Pay Equity law – effective 2018, with broad comparable work standard and a salary history ban
- Federal Equal Pay Act – prohibits sex-based pay differentials for substantially equal work
- Title VII of the Civil Rights Act – prohibits compensation discrimination based on race, sex, national origin, color, and religion
- The ADEA – prohibits compensation discrimination based on age (40+)
- Massachusetts Chapter 151B – prohibits compensation discrimination based on all protected categories
Massachusetts Pay Equity - What Employees Need to Know
Massachusetts’ 2018 Pay Equity law is one of the most employee-protective equal pay statutes in the country. Key provisions:
Comparable work standard
Pay differentials are prohibited between employees performing “comparable work”, a broader standard than “equal work” under federal law. Work is comparable if it requires substantially similar skill, effort, and responsibility, even if job titles differ.
Salary history ban
Massachusetts employers cannot ask about salary history before making a job offer, a provision designed to prevent historical pay gaps from being baked into new offers.
Pay range transparency
Massachusetts now requires employers to disclose pay ranges to applicants upon request and to employees seeking promotions.
Employer self-evaluation defense
Employers that conduct a good-faith self-evaluation of pay practices and make progress toward eliminating disparities may have a limited defense, which means proactive self-audits are increasingly common.
Frequently Asked Questions - Pay Inequality
Q: I found out a male colleague doing the same job is paid significantly more. What can I do?
Under Massachusetts’ Pay Equity law, a pay differential based on gender for comparable work is prohibited. If you have credible evidence of a disparity, from a colleague who disclosed their salary, from a job posting with a salary range, or from other sources, Whitney Law Group can evaluate whether you have a claim under MEPA, Chapter 151B, or federal law. Damages in MEPA cases can include the pay differential for up to three years, liquidated damages (doubling of damages), and attorneys’ fees. Whitney Law Group advises clients on whether a demand letter, an MCAD charge, or litigation is the right path given their specific facts.
Q: My employer gave me a smaller bonus than my peers for reasons that don’t make sense. Is that pay discrimination?
It may be, particularly if the bonus differential correlates with a protected characteristic. Discretionary bonus decisions that systematically disadvantage employees in a protected group, women, older workers, employees of a particular race or national origin, can constitute pay discrimination even when framed as individual performance judgments. The analysis looks at patterns across similarly situated employees, the stated justification for the differential, and whether that justification holds up to scrutiny.
Q: How do I prove that my pay is lower because of discrimination and not just my experience or performance?
Pay discrimination cases typically require comparing your compensation to that of similarly situated employees outside your protected class who perform comparable work. You don’t need identical job titles, you need substantially similar skill, effort, and responsibility. Evidence includes: salary data from colleagues or job postings, performance reviews showing your work is comparable to better-paid peers, patterns of lower pay across your protected group, and employer statements or practices that suggest discriminatory intent. Whitney Law Group works with clients to identify and build the evidentiary record before any claim is filed.
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Serving Marblehead, MA and the North Shore
Whitney Law Group’s main office is at 11 State Street in Marblehead, MA, the firm’s home since its founding in 2017. We serve clients throughout Essex County and the North Shore, including Swampscott, Salem, Beverly, Peabody, Danvers, Gloucester, Newburyport, and Marblehead. Virtual consultations available statewide.
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