How can companies close the gender pay gap?
James Williams
Updated on April 04, 2026
One simple way companies can remedy the gender pay gap is to conduct pay equity audits. Look for discrepancies between pay rates and ensure all employees of equal experience and in similar roles are paid the same – no matter their gender or race.
Why is there a pay gap between genders?
Differences in pay are caused by occupational segregation (with more men in higher paid industries and women in lower paid industries), vertical segregation (fewer women in senior, and hence better paying positions), ineffective equal pay legislation, women’s overall paid working hours, and barriers to entry into the …
What can I do about unequal pay?
Please see or call 1-800- 864-1684 or the Equal Employment Opportunity Commission at or call 1-800-669-4000. As indicated above, the Labor Commissioner’s Office does handle claims under the Equal Pay Act alleging unequal pay (based on sex, race, or ethnicity).
How do you get equal pay?
Here are 10 concrete actions that employers can take to address Black women’s pay gap.
- Undertake a compensation audit.
- Provide greater pay transparency.
- Undertake job analyses to identify comparable jobs and disrupt occupational segregation.
- Raise the minimum wage and eliminate tipped and subminimum wages.
Can you be paid less for doing the same job?
The Equal Pay Act doesn’t allow your employer to pay you less than a coworker doing a similar job. Congress passed the EPA in 1963, mostly to ensure that women earn the same pay rates as men doing similar work.
Can a company cut the salary of an employee?
If the employer is seeking to cut the employee’s pay due to their underperformance or as part of a cost-cutting exercise, it’s unlikely they will be keen to agree a large exit package.
Is it illegal for a woman to get a pay cut?
If all men get a pay cut, but no women, that’s illegal. If all Asians receive a pay cut, but no one else, that’s illegal. If everyone over 40 years of age receives a pay cut, but no one younger, that’s illegal.
Is it legal to cut an employee’s salary without consulting them?
However, with less than two years’ service, if an employer simply reduces pay without consulting with the employee, they may try and argue they have suffered a detriment due to a protected characteristic and have therefore been subjected to discrimination.
Can a company reduce your salary at any time?
In many cases, the answer is yes. The amount you make and the hours you work aren’t guaranteed. If you aren’t protected by an employment contract or bargaining agreement, your employer can reduce your salary and your work schedule at any time, with some limitations. A pay cut is a reduction in an employee’s salary.