Does Amy have a claim under the Equal Pay Act?
Paying employees a commission based on sales volume is a valid form of incentive system. Generally, an employer must demonstrate that its incentive, seniority, or merit system meets five criteria: (1) It wasn’t adopted with discriminatory intent, (2) it’s a formalized system that contains predetermined sex-neutral criteria for measuring seniority, merit, or productivity, (3) it has been distributed to all affected employees, (4) it’s applied consistently to both male and female employees, and (5) it’s the reason for the pay disparity between the male and female employee. Q: Jack and Sue were hired on the same day to work in the maintenance department of the local hospital and perform essentially the same functions. However, Jack works the night shift, and Sue works the day shift. Because he works the night shift, Jack earns approximately $2,500 more per year than Sue. Does their pay disparity violate the Equal Pay Act? A: At first glance, you might argue that Jack and Sue face differen